[box] Over 130 civil society organisations, trade unions and individuals from Greece, Europe and around the world have teamed up with 50 Members of the European Parliament to send a letter to the bidders of the public water company in Thessaloniki urging them to drop their bid.[/box]

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The group has sent letters to companies including the French multinational Suez Environnement, Greek groups Aktor S.A and Terna Energy S.A as well as the Israeli groups Mekorot and Arison Investment concerning their reported bids for EYATH, the Thessaloniki Water and Sewage Company.

Under conditions imposed by the Troika to reduce Greece’s debt, EYATH has been put up for sale by the Greek government against the peoples’ wish. The citizens of the city, the workers as well as the municipalities of Thessaloniki oppose the sale of their public water and have set up different campaigns to stop this privatization.

“While in Greece there is no precedent, the international experience has shown that the privatisation of water has often resulted in the skyrocketing of prices and in some cases in the deterioration of water quality. Although the trend in Europe is towards remunicipalization of our water systems, we are being forced to go the opposite way here,” says Maria Kanellopoulou of initiative Save Greek Water. “EYATH is the first case of water privatization that we need to stop to make sure it does not spread to the rest of Greece,” she added. 

“Companies involved in water privatization have often found their reputations tarnished, their risks increased and their profits limited. The companies aiming to buy EYATH would be clearly basing their business model on opportunism and should take this as a warning sign of the difficulties to come,” said George Archontopoulos from the EYATH Workers Union.

“Last week the Eldorado Gold Corporation announced the suspension of production at the Halkidiki goldmine in Greece. This is another example of a company which is not wanted in Greece and which the people are prepared to fight against to stop the exploitation of one of their common resources. The residents have managed to stall the mine’s activities by a durable and dynamic resistance. This is the same situation we see for the protection of public water and EYATH in Thessaloniki,“ said Gabriella Zanzanaini, Director of European Affairs for Food & Water Europe.

“50 MEPs from the Conservatives, the Popular Party, the Liberals, the Greens, the Socialists and the Left from 18 countries cosigned the letter. This massive participation shows that international and local opposition to the sale of water services will pose a toll over any company that takes part in these privatizations. Companies should make a profit from the trade of private goods, not from acquiring market control over public goods. The European Parliament is sending a clear warning to the Greek government that the privatization of water is neither welcomed nor helping Greece to exit the crisis,” said Kriton Arsenis, Greek MEP, who helped to circulate the letter in the European Parliament.

The groups support keeping the profitable water company in public ownership, where real participation of citizens and workers in the management of water can happen. Considering the current European context where over 1, 600 000 citizens have signed the European Citizens Initiative to protect the right to water and the European Commission’s recent removal of water services from the controversial Concessions Directive, these companies would be going against the tide if they push forward on their bid for EYATH. 

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THE LETTER

We do not want you in Thessaloniki. Please withdraw your bid.

To the companies bidding for EYATH, the Thessaloniki Water and Sewage Company

The press has reported that your company is participating in a bid for Eyath, the Thessaloniki Water and Sewage Company. We ask you to withdraw your bid.

You will be aware that the privatisation of Eyath is opposed by the citizens of the city, by the workers as well as by the municipalities of Thessaloniki. The only reason that this privatisation is going ahead is because it is imposed by the Greek government, itself under pressure from the Troika to reduce Greek debt. There is nothing noble in profiting from this privatisation for you and your company. People in Thessaloniki, supported by many groups are concerned that you pursue profits at the expense of workers and citizens. As in other places, you will likely face years of protracted opposition both in Thessaloniki, Greece and across the world. These struggles are well documented. The companies involved find their reputations tarnished, their credibility in shreds, their risks increased and profits limited. We believe your bid is based on a feeble business case. We would hope that corporations today don’t base their business model on opportunism, nor venture into initiatives where they are clearly unwelcome.

There is an alternative to your bid that is supported by the workers of Eyath, by Thessonikians, by the municipalities, and us. That is to keep water in public ownership and ensure it can continue to deliver a high quality service. It is based on the fact that water is a common good and access to drinking water and sanitation is a basic human right as recognized by the UN (2010) and the successful European Citizens Initiative “Water a Human Right”.

We therefore ask you to withdraw your bid and let the citizens of Thessaloniki determine the future of Eyath.

Yours sincerely,

 Signed by

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GREECE

Organisations

Art Bank, Greece

·       Athens Initiative for a self – organized field at Hellenikon, Greece

·       Citizens of Pilio against the privatization and sell-off of water, Greece

·       Citizens’ Initiative for a fundamental constitutional revision

·       Consumer Social Cooperative of Thessaloniki “Βίος Coop”, Greece

·       Ecological Group “Mother Earth”, Pieria, Greece

·       Ecology-Solidarity (Oikologia – Allilengyi), Greece

·       Ecological Movement of Thessaloniki, Greece

·       Ecology-Greens (Oikologi – Prasinoi) of Central Macedonia

·       EDOTH N/T ADEDY THESSALONIKIS

·       ELE Audit committee for the public debt of Greece

·       Environmental Society of Preveza, Greece

·       FOINIX Organization for sustainable growth applications, Crete

·       Free Popular Resistance Group (E.L.L.A.S.), Greece

·       Hellenic Biodiversity Center, Greece

·       Ikaria Center for Documentation, Research and Action, Greece

·       Initiative 136, Greece

·       Initiative for an understanding of waste disposal management, Greece

·       Network of Exchange and Solidarity of Magnesia, Greece

·       Pancretan Struggle Network against Industrial Renewable Energy Sources

·       People’s University of Social Solidarity Economy, Greece

·       PROSKALO – Cooperation Initiative for the Social and Solidarity Economy

·       SEEYATH, Somateio Ergazomenon EYATH, Greece

·       SOStetoNERO, Greece

·       Save Greek Water, Greece

·       Trade Unions Centre of Thessaloniki, part of G.S.E.E, Greece

·       Without Debt, Without Euro – Community of Thought and Action, Greece

EUROPE

Organisations

·       Action from Ireland, Ireland

·       Agua de Todos, Portugal

·       Abvakabo FNV, The Netherlands

·       Aquattac

·       Alburnus Maior Association (Save Rosia Montana Campaign)

·       Asociatia Bankwatch Romania

·       Associação Sindical dos Profissionais da Inspecção Tributária, Portugal

·       ATTAC Austria

·       ATTAC Castilla y León, Spain

·       ATTAC España

·       ATTAC Norway

·       Berliner Wassertisch, Germany

·       BSRB Federation of State and Municipal Employees, Iceland

·       Campaign for the Welfare State, Norway

·       Centro di Volontariato Internazionale, Italia

·       CGSP Centrale Générale des Services Publics Wallonne, Belgium

·       Confederação Portuguesa das Colectividades de Cultura, Recreio e Desporto (CPCCRD), Portugal

·       Coordination Eau Île-de-France, France

·       Corporate Europe Observatory

·       Coordination Gaz-Électricité-Eau Bruxelles, Belgium   

     Coordination Rhône-Méditerranée des Associations des Usagers de l’Eau, France

     CSC-FEC, Belgium

·       Eau Bien Commun PACA, France

·       Eau Secours 34, France

·       Ecologistas en Acción, Spain

·       Eco Ruralis Association – In support of traditional and organic farmers

·       ELA, Basque Workers Solidarity

·       Euracme, Belgium

·       European Federation of Food Agriculture and Tourism Trade Unions, Belgium

·       European Federation of Public Service Unions

·       European Water Movement

·       Federacion de Empleados Publicos de la Union Sindical Obrera, España

·       Federation “Construction, Industry and Water-Supply” – “PODKREPA”, Bulgaria

·       Fédération des services publics CGT, France

·       FOA – Trade and Labour, Denmark

·       Food & Water Europe

·       Forum Italiano Movimenti per l’Acqua, Italy

·       Foundation for Environment and Agriculture, Bulgaria

·       France Libertés – Fondation Danielle Mitterrand, France

·       Gemeingut in BürgerInnenhand (GiB), Germany

·       GoodPlanet Belgium

·       Government and Public Entities Section – General Workers’ Union, Malta

·       InfOMG – Information Center about GMO’s, Romania

·       Ingénieurs sans frontières, Belgium

·       Institut Européen de Recherche sur la Politique de l’Eau, Belgium

·       Kairos Europe

·       Marée Citoyenne, France

·       Movimento Pela Água, Portugal

·       Mouvement Utopia, France

·       Pancyprian Freedom Guild Worker Water Boards, Cyprus

·       Parti ÉGALITÉ, Belgium

·       Social Development Cooperative, The Netherlands

·       SIPTU Services Industrial Professional and Technical Union, Ireland

·       Swedish Municipal Workers Union, Kommunal, Sweden

·       Sindikata zdravstva Crne Gore, Montenegro

·       The Angry Youth – informal group in Cluj-Napoca, Romania

·       The Corner House, UK

·       The Finnish Public Services Unions’ EU Party FIPSU ry, Finland

·       The Slovak-Scandinavian cooperative Urd, Slovakia

·       Trade Union of Local Government Employess, Denmark

·       Trade Union of State and Local Goverment Employees, Croatia

·       Trade Union of  Public and Welfare Sectors JHL ry, Finland

·       Objectif Ô, Belgium

·       Organic Agriculture Association, Albania

·       Oxfam Solidarité, Belgium

·       PROTOS, Belgium

·       Re:Common, Italy

·       Re.Generation – Bucharest, Romania

·       VISION, Sweden

·       Vodovod I Kanalizacija, Sarajevo, Bosnia & Herzegovina

·       Water Movement Norway

·       WIB “Wasser in Bürgerhand”, Germany

·       Unison, Bristol Water Services Branch, UK

·       UNIÃO DOS SINDICATOS DE LISBOA (USL/CGTP-IN), Portugal

·       Zukunftskonvent, Germany

INTERNATIONAL

Organisations

·       Alliance of Government Workers in the Water Sector, Philippines

·       Blue Planet Project, Canada

·       Canadian Union of Public Employees, Canada

·       Citizen’s Front for Water Democracy (CFWD), India

·       Confederation Chretienne des Syndicats Malgaches “Sekrima”, Madagascar

·       Federación Nacional de Trabajadores del Agua Potable del Peru, Peru

·       Federation of Parastatal Bodies and Other Unions, Mauritius

·       Food & Water Watch, USA

·       Information Resource Centre (For Mah. labour) Nagpur, India

·       Jubilee South Asia Pacific Movement on Debt and Development

·       KRuHA people’s coalition for the right to water, Indonesia

·       LDA EU, Pakistan

·       Nagpur Municipal Corporation Employees Union, India

·       National Platform Against Water Privatization (NPAWP), India

·       The Council of Canadians, Canada

·       Transnational Institute

·       Public Sector Employees Fedration of Pakistan, Pakistan

·       Public Service Alliance of Canada, Canada

·       Public Services International

·       Red Vida, the Americas

·       South African Municipal Workers Union (SAMWU), South Africa

·       Su Hakki Kampanyasi, Turkey

·       Swarna Hansa Foundation, Sri Lanka

·       Water & Energy Users’ Federation (WAFED), Nepal

Members of the European Parliament

·       ANDERSON Martina, Confederal Group of the European United Left – Nordic Green Left, Ireland

·       ARLACCHI Pino, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Italy

·       ARSENIS Kriton, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Greece

·       BALDINI Marino,Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Croatia

·       BÈLIER Sandrine, Group of the Greens/European Free Alliance, France

·       BENNAHMIAS Jean-Luc, Group of the Alliance of Liberals and Democrats for Europe, France

·       CASHMAN Michael, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, United Kingdom

·       CASTEX Françoise, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, France

·       CHILDERS Nessa, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Ireland

·       COFFERATI Sergio Gaetano, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Italy

     DELVAUX Anne, Group of the European People’s Party (Christian Democrats), Belgium

·       EICKHOUT Bas, Group of the Greens/European Free Alliance, Netherlands

·       GARCIA-HIERRO CARABALLO Dolores, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Spain

·       HÂNDEL Thomas, Confederal Group of the European United Left – Nordic Green Left, Germany

·       JAAKONSAARI Liisa, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Finland

·       JADOT Yannick, Group of the Greens/European Free Alliance, France

·       JONG de Cornelis, Confederal Group of the European United Left – Nordic Green Left, Netherlands

·       KADENBACH Karin, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Austria

·       KLEVA KEKUŠ Mojca, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Slovenia

·       KOVÀCS Béla, Non-attached Members, Hungary

·       LAMBERT Jean, Group of the Greens/European Free Alliance, United Kingdom

·       LEICHTFRIED Jörg, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Austria

·       LEINEN Jo, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Germany

·       MERKIES Judith A., Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Netherlands

·       MILANA Guido, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Italy

·       MIRANDA Ana, Group of the Greens/European Free Alliance, Spain

·       PALECKIS Justas Vincas, Lithuania

·       PAPADOPOULOU Antigoni, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Cyprus

·       PERELLO RODRIGUEZ, Andres, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Spain

·       PIRILLO Mario, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Italy

·       PITTELA Gianni, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Italy

·       PRODI Vittorio, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Italy

·       REGNER Evelyn, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Austria

·       RIVASI Michèle, Group of the Greens/European Free Alliance, France

·       ROMEVA I RUEDA Raül, Group of the Greens/European Free Alliance, Spain

·       RÜHLE Heidi, Group of the Greens/European Free Alliance, Germany

·       SCHOLZ Helmut, Confederal Group of the European United Left – Nordic Green Left, Germany

·       SIMON Peter, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Germany

·       STADLER Ewald, Non-attached member, Austria

·       STAES Bart, Group of the Greens/European Free Alliance, Belgium

·       TARABELLA Marc, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Belgium

·       TOIA Patrizia, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Italy

·       ULVSKOG Marita, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Sweden

·       VAJGL Ivo, Group of the Alliance of Liberals and Democrats for Europe, Slovenia

·       WEIDENHOLZER Josef, Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, Austria

·       WILS Sabine, Confederal Group of the European United Left – Nordic Green Left, Germany

·       WOJCIECHOWSKI Janusz, European Conservatives and Reformists Group, Poland

·       ZANONI Andrea, Group of the Alliance of Liberals and Democrats for Europe, Italy

·       ZIMMER Gabi, President of Confederal Group of the European United Left – Nordic Green Left, Germany, Germany

INDIVIDUALS 

 ·     David McDonald, Professor, Queen’s University, Canada

·       David Barkin, Profesor de Economía, Mexico

·       Lucienne THIPHAINE, journaliste et plasticienne. France

·       Ursula Pezeu, sophrologist, translator, France

·       Jutta Schutz, Aquattac

·       Leslie Franke and Herdolor Lorenz, Kernfilm

·       Evgnomia Xinu, Thessaloniki, Greece

·       Christophe Thurotte, Chargé d’études, GAIA Concept, France

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The tender for the selling of Thessaloniki water company,  EYATH, which takes place under media silence by (private) TV stations  enters now in its second phase, after the TAIPED excluded “Citizens for Water“(the effort of cooperative management by Thessalonians together with the union workers). Mr. Stavridis, former president of the EYDAP (Athens Water Company) and now head of  TAIPED (or HDRAF, the fund where all public assets were transferred in order to be sold), who is among the most eager supporters of  free economy, especially when it is implemented by creating private monopolies under the supervision of “regulators”, in a monumental, for the lack of any legal or other documentation or explanation, letter ‘informs’  in an acquiescent tone that the Union’s proposal does not “pass” to the next phase. In the next phase, however, passes the French multinational Suez along with the even more willing Mr. Bobolas and even  the public (!) Israeli company Mekorot’s joint venture with Mr. Apostolopoulos. The Union has already filed a complaint, as it was expected, and now we wait.

We wait furthermore for the implementation of the decisions of 17 municipalities from the region of Thessaloniki  to hold local referendums and the signing of the relevant notorious presidential decree which enables this procedure,  a decree which is characteristically “slow” in its legislative adventure, from Callicrates until today – how many years is it? – While overnight the institutional “father” of the Greek people signed with a stroke of a pen the abolition of ERT. Following the announced privatization of water,  a few days ago, ” black” fell on all television, radio, internet and satellite programs of the public broadcaster.

It is a sad development in our effort to inform our fellow citizens over the dangers of privatization, since we were expecting  the projection of a relevant documentary of the series  “EXANDAS” by Y. Avgeropoulos, in the preparation of which we participated. This development is dangerous for another delicate reason, which falls in the category of our engagement with the wider concept of the commons. The archive of ERT, the ark of our modern cultural history, it is inconceivable for us to become an object  of vulgar trade and such an act would signify the ultimate enclosure, beyond that of our natural collective goods such as water, of our collective intellect and our cultural heritage.

In both cases what we see is a palinode. The government blames the Troika and the European Commission and the Commission washes its hands regarding these decisions. I want to denounce the current government and especially their assistant political parties, who are opposed, as they claim,  at the sale of EYATH (and the abolition of ERT) that they are moving on their own responsibility and to a future time hopefully liability in this sale, since there is an official letter from the European Commission that says they are not pushing our country in this direction. Why the Commission wrote this letter? They know that the pressure to privatize water services is unlawful, since they are bound by the TFEU to be neutral on issues of management of water services (Article 345 TFEU). So if the government is pressed, they have to admit it in public, to come forward and say that the European Commission  is lying and we can all support them and go to the European courts. If the government is not pressed and simply lacks rationality and an  understanding of the concept of public interest, there is another reason why they shouldn’t want the sale of water services. In the case of Athens even if sold at 350 million, ie the market value of our shares, the public sector’s shares, to the water company, tomorrow instead of collecting, the government should instead pay, since the company has receivables from the State, local authorities, etc., which mount up to 1.2 billion! (See Annual Financial Report 2012). As for the European Commission, they have no legitimacy to move forward with the privatization in the countries of the South, when we already have in our hands the first historically successful European Citizens’ Initiative right2water. Instead of playing hide and seek, they would do well to open directly processes to institutionalize the human right to access to clean water and hygiene, which was adopted in 2010 by the UN, as the proposed legislative initiative by the citizens suggest and abandon their desires for establishing a water market in Europe,  desires rooting in the Steering group of Mr Barnier, a body composed of high ranking executives of the sector’s multinationals. The institutional role of Mr Barnier, although he fails to grasp it, is the European public interest and speculation on the basic needs of European citizens do not reflect it in the least.

Whether it is about our  physical commons such as water, or our collective cultural heritage, one thing is certain. Each enclosure is directly or indirectly against the fundamental human right to life. Commons are not owned by any temporary elected representative.

Regardless of whether one agrees or not with the above, there is one point on which everyone would meet me upon: It is the responsibility of the Politeia (State) (Greek and European) to  give an institutional way-out at the society’s will . If it cannot perform it, we have an ontological crisis as a political society, far more destructive than the much discussed economical.

Sign for your water in Greece and Europe.

Some figures: EYATH is a company with a monopoly on the supply of water in Thessaloniki area. It has profitability in 2012 of 24 million euros, available cash 33 million euros, equity of 135 million euros and annual income 74 million. The value of the stock is 220 million euros and the 75% that is held by TAIPED if sold in the market value which is 165 million euros, the investor will get his money back in six years and will obtain ownership of a company with monopoly rights. It is an investment that with current water prices has an 18% annual return on capital employed (33/135) and if the tarrifs are increased the return yields off.

Why “no” to privatization: What are the implications in our lives from the privatization of water services; What does international experience show? • sudden price increases of 250% – 300% with the partial privatization of EYATH. Prices x12 times in Bucharest over 13 years. Pacos de Ferreira Portugal 400% increase and 6% increase each year.• Degradation of water quality and uneven access to water services. In Walkerton (Ontario) Canada seven people lost their lives drinking water with bacteria E coli. Extensive infections with Suez in Johannesburg (South Africa). • Incomplete network maintenance & breaches of contractual terms for investments. In France, funding water services are still made by the public sector at 88%. In Argentina, the government terminated the contract with Suez for breach of its contractual obligations (maintenance and expansion of the network). • Monopolistic practices and cartels. The EU conducted research at SUEZ, VEOLIA and SAUR, for trusts in France (2012). In England companies right from the stage of the competition do not compete with each other and take to competitions without rival. • Lack of accountability and secret agreements. Most contracts remain secret eluding anyone control. In Berlin, the VEOLIA and RWE, in 1999, had demanded a written guarantee large profit was kept secret until the public in 2011 by referendum demanded to publicize the terms of the contract. Wherevere applied, water privatization has failed.

The international trend is the recovery of water services by public bodies (France, Canada, Argentina, Hungary). The Italians prevented water privatization with a referendum (2011). In the Netherlands water services is by law public (2004). In Germany, except in the case of Berlin, where developments of remunicipalization are underway, water management is done by public bodies.

*Ms Kanellopoulou is a founding member of the Initiative for the non privatization of water in Greece savegreekwater.org

[box] Success for the ECI (European Citizens Initiative) on affordable and non-privatized access to clean water. This legislative initiative, an institution which was adopted at the Treaty of Lisbon, is the first successful attempt to collect among the European citizens 1,000,000 official signatures, (with passport number or ID), so as to call on the European Commission to initiate a legislative process. (Before of the implementation of ECI, only the commission had the right to initiate legislation at the European Parliament.) [/box]

[box]Perhaps now, that the Europeans have spoken up and declared, despite the technical and legal setbacks, that they do not want the water market creation and commercialization of their precious resource, the unelected Commissioners Barnier and Oli Rehn will begin to listen also  to civil society apart from their friends of the Steering Group, consisting of executives of water corporations. Unless they regard themselves, emperors.[/box]

[box type=”warning”] Although the 1,000,000 signatures were collected, apparently they are supposed to consist of a minimum of signatures from 7 different countries… Greece has yet to catch this minimum which in our case is 16,500. Many have contacted us because they were not able to sign electronically. We alerted the organizers of the European Citizens Initiative about this so as to urge the EU In order to solve the technical problems since the software used for the process is theirs… As if it were not enough that civil society is required to run such an expensive and intricate in legal proceedings, procedure, they make whatever humanly possible to complicate it further.. Another reason for us to skyrocket signatures from Greece.[/box]

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EUROPEAN FEDERATION OF PUBLIC SERVICES UNION

EPSU Press communication 

11 February 2013

“One million signatures for Water as a Human Right !”

 (Brussels, 11 February)

Yesterday, the first up and running European Citizens Initiative (ECI) ‘Water is a Human Right’ made history as also being the first ECI in the history of the European Union to have collected over 1 million signatures.

Anne-Marie Perret, President of the Citizens Committee says “Reaching this important milestone, with one Million EU citizens agreeing that water and sanitation are human rights, is a great success. We appreciate the support of so many and will continue campaigning to pass a strong message to the European Commission.  We have also managed to overcome the start up problems, as well as the legal and technical barriers forced upon us by the European Commission and Member States.”

The ECI “Water is a Human Right” has been a success not just because more than 1 million people have signed but in terms of creating a real European debate. 2013 is the European Year of citizenship and we have manage to get more than 1.5 million visits to our website the month of January only. It has contributed to creating a space for a European debate in which many citizens are engaging.

The ECI will continue to collect signatures to ensure that the voices of as many people in  as many different countries as possible are heard. On March 22^rd we will celebrate World Water Day with well over a million voices against liberalization of water, and for the implementation of the human right to water and sanitation in the EU.

For more information: Pablo Sanchez, [email protected]  0032 (0) 474 62 66 33

EPSU is the European Federation of Public Service Unions. It is the largest federation of the ETUC and comprises 8 million public service workers from over 275 trade unions; EPSU organizes workers in the energy, water and waste sectors, health and social services and local and national administration, in all European countries including in the EU’s Eastern Neighborhood. EPSU is the recognized regional organization of Public Services International (PSI).

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[box type=”info”] The legal basis of the citizens’ initiative is set out in Article 11, Paragraph 4 of the Treaty on European Union (TEU) and Article 24, paragraph 1 of the Treaty on the Functioning of the European Union (TFEU). Both articles were newly introduced with the Treaty of Lisbon.[/box]

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[box] Two MEPs from France and Germany are asking for a moratorium for the freezing of any standing or future contract negotiations of water multinationals that are under scrutiny by EU Commission for an antitrust case while appealing to all European Politicians to cosign their initiative. If this occurs then it is most likely to influence the participation of the companies above to the tenders of TAIPED regarding the sale of EYDAP and EYATH that are expected soon.[/box]

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Water is a common good:

do not let the private sector act with impunity!

Dear European, national and local politicians,

On January 18th 2012, an antitrust procedure was opened in France on 18th of January 2012 by the European Commission’ Directorate General for Competition concerning a potential cartel on price between Suez, Veolia and La Saur. According to the press release, “the Commission will examine in the following weeks the behaviour of the targeted companies as well as the Professional Water Company Federation (FP2E)”. This case was opened following unexpected inspections led in France in April 2010. At this time, the Lyonnaise des Eaux (Suez) was fined EUR 8 million based on a EC breached seal.

According to the TFEU article 101, horizontal agreements between companies are forbidden. The Directorate General for Competition can on its own initiative trigger a cartel case based on serious criteria which can then lead to fine the companies up to 10% of their annual turnover.

We are expecting the conclusions of the European Commission to be published early 2013, hoping that the serious criteria on illegal behaviours would reveal to be unfounded accusations. In the mean time, we believe that the precautionary principle should apply, bearing in mind the contracts’ length (10-20 years) and the financial volume at stake.

We can state as an example the selling conditions for the cession of 24,9% of RWE (THAMES WATER) in the Berlin Lander. The negotiated price based on business law of EUR 659 Millions for anticipated breach of provider’s agreement.

This amount does not reflect any sale of assets or infrastructure but opaque calculations of unrealised gains of a 30 years contract that was supposed to end in 2028. We are talking about taxpayers’ money spent for unrealised gains, without any activity, management costs or any performance in return. It is a form of golden hand shake that is simply unbearable at a time of public finances’ indebtedness.

We also notice in this contract with Berlin that the second private partner, Veolia, could also ask for a similar golden hand shake, which would then mean a potential overall amount of EUR 1,3 Billion!

A very great deal is at stake: these types of agreements are currently negotiated in 14 different cities in France, e.g. in Marseille (for a EUR 3 Billion financial volume), but also in Lille, Lyon, Rennes, Montpellier, Nice, Bordeaux or Toulouse for equivalent amounts.

At a time of austerity measures and budget cuts, it would be irresponsible from local politicians to engage public money in 10-20 years agreements without having previously demonstrated real financial advantages of an open tender in the water sector as well as a clear negotiation over the agreement termination clause.

In light of these elements, we appeal local, national and European politicians on economic challenges at stake and call for a moratorium that would suspend current pending or future negotiations between local authorities and the aforementioned companies until the end of the antitrust case opened by the European Commission.

(original text in french)

 Signatories:

European Parliament Members:               Karim Zéribi, EELV/FR, Marseille

                                                                         Sven Giegold, EELV/DE, Düsseldorf

Members of National Parliaments:

Senators:

Elected in Region:

Elected locally:

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