News from the Ground

Resist and transform: the struggle for water in Greece

Privatisation and the nature of the state is moving to the centre of the struggle against austerity in Greece. The troika of the three key lenders to Greece – the European Commission, IMF and European Central Bank – is trying to speed up the sell-off of the country’s public goods and resources by putting them in one holding company to be auctioned off in quick succession. The Hellenic Republic Asset Development Fund (TAIPED), as this company is pompously named, might as well be an auction house advertising an ‘everything must go’ clear out: ‘Greece for sale. Real estate bargains, profitable companies going cheap.’

Resistance to this handover to the corporate market faces a challenge. In 2011 a reputable polling company found that 75 per cent of Greeks believed privatisation was necessary; in 2012 it was down to 62 per cent but still well over half the population – including more than 40 per cent of Syriza voters. These same polls, however, indicate a point of vulnerability for the troika: water, the one issue on which a majority opposes privatisation. And it is on this issue that resistance is beginning to gain momentum as TAIPED announces that bids for the two state-owned water companies will be invited before the summer for sale by October.

Providing clean water in Istanbul

Providing clean water at relevant quality and quantity is a challenge that regulatory authorities have to face in metropolitan cities that seem to develop at their limits of sustainability. Istanbul strives to face such a challenge for its population of over 10 million, through six surface water resources.

Nearly all of Istanbul’s drinking water (97%) comes from surface water collected in reservoirs. Its most important water sources are the Omerli-Darlik system on the Asian side and the Terkos-Alibeykoy system on the European side. Both systems consist of dams, reservoirs, water treatment plants and pipelines. Many of the reservoirs that supply Istanbul are located within the metropolitan area and are exposed to pollution from settlements without adequate sanitation.

The battle to keep water out of the european internal market

A test case for democracy in Europe.

The European Commission has in recent weeks gone on a PR offensive in response to growing criticism of its pro-privatisation agenda for the water sector. The criticism centres around the water privatisation conditions attached to the Troika’s rescue packages for Greece and Portugal, and the proposed EU concessions directive, which could lead to increased privatisation pressure on public water municipalities across Europe.

The concessions directive, which has the stated object of opening markets and eliminating “discrepancies among national regimes”, would end the exemption that has so far existed for drinking water supply and for the first time bring it under the rules of the EU’s single market.

Thessaloniki Mayors want public management of EYATH

Against the tender for the privatization of EYATH are the municipalities of Thessaloniki, who seem decided to take over the management of water, requiring that TAIPED transfers its 51% stakes in the company to their control.

Article by Fani Sovitsli republication from Makedonia newspaper

translation SAVEGREEKWATER team

Furthermore, if their proposal is not accepted by the Greek public, they intend to participate in the contest in collaboration with the “Movement 136″, ensuring the necessary funding through loans.

British water companies are caught avoiding tax

British water companies are avoiding millions of pounds in tax by loading themselves up with debt listed on an offshore stock exchange, an investigation has revealed.

The disclosure is likely to reignite the public outcry about legal tax avoidance by big firms at a time when Britain is drowning in debt and suffering painful public spending cuts. It comes only a week after industry regulator Ofwat announced that water bills would rise by an average of 3.5 per cent to £388 a year. Corporate Watch found six UK water companies took high-interest loans from their owners through the Channel Islands stock exchange. Interest payments on the loans reduce taxable profits in the UK and, thanks to a regulatory loophole, go to the owners tax free.

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