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Further discussion on liberalising the water supply

Alfred Tacke
ifo Institut für Wirtschaftsforschung, München, 2001

in: ifo Schnelldienst, 2001, 54, Nr. 15, 03-05

In ifo Schnelldienst 14/2001, the issue of "liberalising the water supply - will the last supply monopoly in Germany be eliminated?" was discussed. A further contribution to this discussion comes from Dr. Alfred Tacke, Permanent Secretary at the Ministry for Economics and Technology, who presents the position of the German federal government. Since the German water suppliers have come under strong adjustment and efficiency pressure in the wake of the European Single Market and the globalisation of the economy, he argues that "drinking water should be increasingly regarded as a service and hence an economic good that requires an ecologically and economically sustainable, i.e. efficiency enhancing management". The current system must be re-examined so that German suppliers can react better to the development of European and international developments.

JEL Classification: Q250

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ifo Institut für Wirtschaftsforschung, München, 2001