Brussels, 21/02/2013 (Agence Europe) - On Thursday 21 February, the Commissioner for the internal market, Michel Barnier, attempted to provide assurances to German-speaking MEPs with regard to the draft directive on service concessions. He explained that this was not aimed at opening up services operated by the water board to competition, as feared by many German and Austrian MEPs (see EUROPE 10771).
In response to MEPs from the European Parliament's internal market committee, the Commissioner declared that, in reply to certain “false” accusations, the Commission is not seeking to privatise the water board in any way either today or tomorrow. He added that, on the contrary, the draft of the text as it currently stands clearly recognises the freedom of the member states and the autonomy of the local authorities in this area. They will define the objectives they consider appropriate for services of general economic interest and they will choose the most appropriate mode of managing their water services. This is guaranteed by the European Treaties and Protocol 26, and no European law can contravene this principle.
Barnier did, however, recognise the necessity of finding a fair and balanced solution, which resolves the difficulties that German municipal companies (“Stadtwerke”) may have to confront, whilst avoiding any distortions to competition. Some of these undertakings enjoy a public monopoly in water distribution services and can at the same time be active on other competitive markets to the extent that they no longer respect the jurisprudential criteria of the Court that allow them to benefit from direct contracts awarded by the local authorities. The Commissioner put forward the following solution: the German municipalities will be able to continue to award (without putting them out to tender) water board contracts to the “Stadtwerke” if they carry out at least 80% of water service activities with these same municipalities and if they implement structural separation or, failing that, separate compatibility between public activities, such as water and private business activities, such as electricity.
On Thursday, the Parliamentary committee gave the go-ahead to opening inter-institutional negotiations with the Irish presidency, in view of completing the “concessions” directive and the “public procurement” directives review (see EUROPE 10755). (MB/transl.fl)