Galatsi Municipality adopts also resolution against water privatization

Galatsi Municipality adopts also resolution against water privatization

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[box] After Pallini Municipality , Galatsi Municipality adopted a resolution against the privatization of EYDAP so that “water remain a public and social good.” The resolution submitted by the Coordinating Committee for Citizens & Associations of Galatsi to the Municipal Council meeting on March 6, 2013.[/box]

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The resolution submitted and adopted by the City Council is the following:


From the city administration and all the Councillors of the Municipal Board to vote the following text, which explains why public water management agencies in Greeceshould not be privatized .
From the city administration and all the Councillors of the Municipal Board to support by every means our request to keep water a social safe and affordable good for everyone and EYDAP to remain public company.
From the city administration and all the Councillors of the Municipal Board to promote our request to their political partiesas well as the city administration to promote and support the ratification of the resolution to KEDE (Central Municipalities Association).

To keep the water a social good and its management in public and social organization.
In Greece, Water & Sewer services are provided by public or municipal bodies. In Attica, the Water Supply & Sewerage Company (EYDAP ) has the exclusive jurisdiction on water supply, drainage, sewerage and owns networks and premises. Respectively inThessaloniki the jurisdiction lies on the Thessaloniki Water Supply and Sewerage Company of Thessaloniki (EYATH ) and the rest of Greece by the local Municipal Enterprises for Water Supply and Sewerage (DEYA).

There is no reason to privatize EYDAP as a public, social and financially profitable company because:
1) For decades, even in times of great scarcity the country faced its customers have had water on tap sufficiently and in excellent quality.

2) EYDAP company is not deficient. Indeed, on 2010 , a year of recession in the national economy, it increased profitability by 158% without price increases achieving profits for the state both in taxation & dividends. Moreover, according to the official statistical summary of Greek Stock Exchange for 9 months in 2011 showed profit of 75%!

3) EYDAP does not burden the state budget and is not funded by the state.

Privatization of water resources has benefits only for companies that run them.

Moreover, it is well known that the primary objective of any private company is to maximize profits. It’s not the role of a private company to do social policy and certainly does not act always in accordance with the broader social interest.

It is clear that the reduction of labor costs, such as the abolition of labor regulations create an ‘attractive’ working environment for potential investors.

The privatization of EYDAP

Within the global context set under Troika, the privatization of EYDAP is now imminent. According to the mid-term program, the privatization of EYDAP is accomplished in 2013 through the sale of 61% of the shares of the Company which has already been transferred to the Fund for the Development of Public Property. (TAIPED). However, in Memorandum II, in the chapter of Structural Fiscal Reforms (Asset Management and Privatization) it is explicitly stated that “the control of government should be limited only to cases of critical network infrastructure.”

It is clear that if the Greek government privatizes EYDAP will definitely lose it, since it concerns monopoly selling and not concession for a specified period . This means in essence the definitive end of the public and social character of EYDAP.

A private enterprise “management” will not invest in new infrastructure or replacements of obsolete networks and installations, because it will not be the owner of these assets and will bring costs to the company. Furthermore, the maintenance of existing projects will be flawed at minimum cost. The result of this management will be the collapse of infrastructure, and then the Greek government – which would have already lost any kind of income – will assume the expenses of the consolidation of ownership of its facilities (see the case of Great Britain).

In addition , the supply of drinking water is not ensured for the same reason of cost reduction. Now, EYDAP provides consumers with high quality cheap drinking water pricing just 0,50 € per cubic meter (1000 liters). The price difference between bottled water and EYDAP is obvious:

Moreover, private companies in order to increase their profits and reduce their tax costs, outsource large supplies of materials and structures into their subsidiaries, as they are not subject to government regulations concerning supplies& works, whatever this implies for Greek companies.

Privatization of water supply and sanitation leads to increased prices for consumers, without any guarantee for improvement of services.

In conclusion, EYDAP running under public management has maximized goals of quality, efficiency & low price social water, while in contrast the private companies usually maximize their profits at the expense of quality.

Hopefully this information to all stakeholders, consumers and media, will create a dynamic flow resistance in the upcoming sellout of this precious natural resource, through the privatization of EYDAP.

So that the citizen of Athens enjoys the best life good , water, -in excellent quality in competence and at low price.

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Initiative for the non privatization of water in Greece


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