Posted on 23-5-2003

Evian - Corporate Welfare

The EU Water Fund, to be presented at the G8 summit in Evian, seems more about corporate welfare than helping the world's poorest. The EU plan builds on controversial proposals by former IMF director Michel Camdessus, to use aid money to subsidise the expansion of private water corporations. Confidential documents obtained by CEO show how the European Commission has worked in tandem with Suez and other giant water corporations in developing its international water initiatives.

Water will be top of the agenda when the heads of state of the G-8 countries meet June 1-3 at their annual summit, in the French lake resort Evian. Summit host Jacques Chirac is preparing a "Global Water Plan" and European Commission President Romano Prodi will launch the EU Water Fund. Both initiatives are announced as direct follow-up from the World Water Forum in Kyoto (March 2003), which failed to reach agreement on the central question of how to finance improved access to drinking water and sanitation for the world's poorest. Additionally both rely heavily on the controversial report written for the Kyoto conference by a panel chaired by former IMF director Michel Camdessus. [1] The Camdessus report, among other things, recommended using public funding and development aid to facilitate investments by the private sector. [2] This would effectively mean subsidising the privatisation of water delivery, despite the growing evidence that the water needs of the poor should not be left in the hands of transnational water corporations. [3] The proposals caused deep splits and a deadlock in government talks at the Kyoto conference, but the EU seems determined to steamroll ahead.

See full article online at www.corporateeurope.org/water/infobrief6.htm