Water privatisation in France and Germany: The importance of local interest groups

Abstract

This paper introduces the concept of water privatisation and argues that the choice to privatise water utilities is often a local government issue, thereby challenging the literature that considers privatisation on a solely national-level basis. The factors impacting on local water privatisation are introduced, and a hypothesis including conditions likely to lead to or hinder local water privatisation is presented. It is the economic and political strength of local municipalities, combined with the voice of opposition groups, unions, and NGOs, that determine the outcomes of privatisation processes. Paradoxically, the strong central state in France encourages privatisation because it implies politically and financially weak municipalities and interest groups. The weaker central state in Germany has resulted in stronger municipalities and civil society, and the retention of water largely within the public realm.

Notes

1 The author recognises that Paris and Berlin, as national capitals, may exhibit different dynamics than other, smaller cities. The conclusion and further research directions address this issue.

2 Drinking water is managed differently than wastewater in the FRG, taking different legal forms. Wastewater supply must always be subject to public law, whereas drinking water can be subject to private law (Kraemer & Jäger, 1998: 216).

3 A ‘privatisation process’ begins when municipalities solicit bids for private involvement in municipal water services. The process ends when a contract is signed.

4 The ÖTV Union was incorporated into Ver.di (Vereinte Dienstleistungsgewerkschaft, or United Services Union) in March 2001.