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The Case for Investment Cohesion Funding and Europe’S Water: Successes to Date, Challenges Ahead

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The Case for Investment Cohesion Funding and Europe’S Water: Successes to Date, Challenges Ahead The Case for Investment Cohesion Funding and Europe’s Water: Successes to Date, Challenges Ahead CONTENTS 4 INTRODUCTION FROM VICTOR BOSTINARU MEP 5 EXECUTIVE SUMMARY 8 AN INTRODUCTION TO THE COHESION FUND AND WATER INVESTMENTS 21 EUROPEAN UNION WATER LAW 25 SUMMARY LIST OF NON-COMPLIANCE 30 APPENDIX: DETAILED LIST OF NON-COMPLIANCE PAGE 3 INTRODUCTION FROM VICTOR BOSTINARU MEP All across Europe, governments are efficient and extensive infrastructure Investment in the water sector – and struggling to meet the challenges network that improves access to Cohesion Fund projects more posed by high public sector debt drinking water and drainage and waste generally – is not simply an investment burdens and increasing management systems. More in infrastructure. It is an investment in unemployment. As a result of these specifically, I concluded that the terms more growth and more jobs for all economic challenges, many European of the Cohesion Fund budgeting round parts of the European Union; from Union member states have issued calls from 2014 to 2020 should contain building and maintaining for the European Union’s budget to be measures designed to "address the infrastructure on the ground to the cut. Individual member states have significant needs for investment in the research, development and innovation argued that, by reducing the amount water sector to meet the centres that devise solutions to they pay into the EU’s budget, they will requirements of the Union's challenges facing the sector. be able to better focus on spending environmental acquis" as well as priorities on a domestic level. promoting energy efficiency, job The challenge to the European Union creation and economic growth. is clear. At a time when Europe is The EU budget is different from facing economic challenges on an national budgets. The EU budget is an This report demonstrates the scale of unprecedented sale, it would be investment tool to support long-term the problem that exists across the 27 foolhardy to cut the very funding that development and strategic European EU member states. The quality of provides the economic motor that can co-operation. In fact 94% of the EU water in many countries has to return Europe to a position of budget is invested in the member improve and the money needs to be economic growth while at the same states to create a European added found to make it happen – starting time bringing about demonstrable value or in making sure the EU speaks with the city of Brussels, in which the benefits to the quality of life of with one voice on the world stage. European Union’s institutions are millions of European citizens. The budget cannot run a deficit and based. As we prepare to commit cannot produce debt. It gives billions of Euros of investment to Victor Bostinaru MEP additional instruments to the member infrastructure projects, through the EU states and the regions that are crucial Cohesion Fund, we must demand in times of austerity. improvements from these failing cities, regions and countries. Every As such, in my 2012 report presented country needs to apportion funds to to the European Parliament's meet minimum standards of water Committee on Regional Development, quality that we should all expect I argued it is necessary to ensure an across Europe. PAGE 4 EXECUTIVE SUMMARY • The European Union is currently concluding its • Instances of non-compliance with EU water arrangements for the 2014 to 2020 Cohesion legislation span both north and south Europe and Fund. The Cohesion Fund provides funding occur in both old and new EU member states. support for infrastructure-related project to regions across Europe whose economic • Non-compliance with EU water legislation leaves development lags behind EU average standards. taxpayers across the European Union area vulnerable to fines of up to €3,026,124 a day or • Since the launch of the Cohesion Fund in 1994, it €1,104,535,260 a year. has brought untold benefits in terms of upgraded infrastructure in many countries across the • The Cohesion Fund can be used as a means by European Union. This has resulted in economic which to assist EU countries (particularly those growth and improved living standards for millions from the 2004 and 2007 accession waves) in of people. bringing their domestic water standards into compliance with the law. • For the 2007 to 2013 funding period, financial support totalled €347 billion - equivalent to • Ongoing EU investment in the water sector is approximately one third of the European Union's crucial for improving the quality of life of EU total budget. citizens, providing employment opportunities and encouraging ongoing research and innovation in • The European Union is responsible for Europe. formulating legislation in respect of the water sector; including regulations governing water • The budget of the European Union and individual monitoring requirements, cleanliness and EU member states is under pressure from the chemical treatment. drive for austerity. Such cuts should not be instituted while infrastructure and legal • A total of 6,311 areas across Europe are still not compliance challenges remain in so many EU in compliance with European Union laws member states. governing the water sector. • Romania is the country with least compliance The information contained in the report has been with EU water legislation with a total of 2,476 obtained from formal European Commission sources, instances of non-compliance followed by Spain including information that is available as a matter of (1148), Bulgaria (901), Hungary (631) and Slovakia public record. The research reflects the position for (356). Brussels, the “capital” of the European the year 2012/3.For further information, contact the Union, is also featured in the report. European Commission’s Europe Direct service on 00 800 67891011 or visit http://bit.ly/hqTvYi PAGE 5 Brilliant Visit Liege Balaton Home to some of Belgium’s One of 631 cases of 72 areas of non-compliance non-compliance in Hungary Amn Alcntr Just one of 1,148 a non-comp reas of liance in Spain Areas of Europe not compliant with EU water legislation Perfect Porto Alto Greetings Albeit one of 201 areas of P non-compliance in Portugal from Pisa arty Leani Polic ng into Italy’s 4 areas of n 43 on-compliance Where Gr 22 cases E j Koi A hi ghlight of Slovakia’s 356 cases of non-compl Just one of Romania’s 2,476 iance Bareeasa ofu notn-icfomuplliance Brasov Hid Vn One of Bulgaria’s 901 areas of non-compliance Head to Ayia Napa Find some of Cyprus’ 57 cases of non-compliance here Party in Polichono Where Greece offers you 22 cases of non-compliance AN INTRODUCTION TO THE COHESION FUND AND WATER INVESTMENTS The Cohesion Fund was set up in 1994 from their own national budgets. water sector was necessary to ensure in order to provide funding for a business environment that was environmental projects and trans- Writing in 2006, the then European conducive to economic development national transport infrastructure Commissioner for Environmental Policy as well as being sensitive to projects and spans several distinct Stavros Dimas outlined details of the environment and human concerns. funding streams; all designed to raise three Cohesion Fund support streams Therefore, this funding stream had the quality of life of European citizens available for water-related projects clear relevance to the need for and increase economic activity in (these funding mechanisms are member states to adhere to stringent regions whose economies lag behind discussed in more detail later in this environmental standards. the rest of the EU. report): Cooperation: To promote the balanced The Fund has proved particularly Convergence funding: Support to and sustainable development of all crucial in respect of assisting member stimulate growth potential by focussed regions of the European Union so as to states in remedying problems with investment in collective services ensure that one region, country or sub- their national water infrastructure; needed to ensure long-term region (such as a county or state) improving public health and increasing competitiveness. Dimas argued that lagged considerably behind the rest of the degree to which EU member states massive investment in water the European Union in terms of its adhere to legislation mandating the infrastructure was required to upgrade environmental and social standards. scrupulous testing and cleanliness of and extend water and sanitation Again, Dimas argued that the uneven water. systems to new member states whose development of water infrastructure laws were not in line with EU law. instituted a clear “barrier effect” which The support from the Cohesion Fund is harmed this sense of equal based on the principle of “co- Regional competitiveness and development. 1 financing.” The maximum rate of employment: To anticipate and support for any specific investment promote economic change and projects brought about by the development by improving Cohesion Fund can only amount to competitiveness and attractiveness 85% with individual national through investments in the knowledge- governments or member states also based economy and innovation. Dimas having to make up the remaining 15% argued that the investment in the 1 Making the Structural and Cohesion Funds Water Positive, Commissioner Stavros Dimas and the European Network of Environmental Authorities, February 2006. PAGE 8 For the period from 2007 to 2013 the following funding streams were made available for water-related projects: Item Funding stream available European Regional European Social Cohesion Fund Development Fund Fund Scientific studies, inventories and mapping X Awareness-raising campaigns X Monitoring systems and risk analyses X Water-saving solutions for industry X Adapting existing water infrastructure X X Improvement of water networks X X Equipment acquisition X Why invest in water? The benefits of Cohesion Fund investments in water-related projects are clear to see; spanning economic, environment and social factors.
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