Effizienz und Wettbewerb in der deutschen Wasserwirtschaft zwischen „Modernisierung“ und „Regulierung“

The modernization strategy for the German water industry - called for in 2002 by the German Bundestag and translated into concrete measures by the Federal Government in 2006 - can be seen as the German response to the long-standing, controversial, Europe-wide debate on the liberalization and privatization of the water sector and the continuing criticism of water sector efficiency. While the debate about the cost efficiency of the water supply sector has since gained new momentum due to the closer examination of water pricing under German cartel law, the discussion about the comprehensive strategy, which aimed to modernize the water supply and waste water disposal sector in equal measure, has gone relatively quiet. Proposals put forward intermittently by the German Monopoly Commission which foresee, inter alia, sector-specific regulation, as well as the reform efforts undertaken by the EU Commission in the area of procurement law, however, go much further than a modernization approach. The aim of this paper is to take stock of the modernization measures implemented so far and to give a critical evaluation of the scope for alternatives from an economic perspective.