PRIVATIZING WATER IN GREECE

Despite the fact that international exprerience shows that water privatization is harmful to the interests of citizens, the Greek government is pushing ahead with privatizing water supply and sewerage companies. In this report for UNFOLLOW magazine, Christos Avramidis and Antonis Galanopoulos present several sides of the issue, including a much debated attempt to claim the Thessaloniki water supply company for the people of the city.

“The idea that water is a human right comes from ‘extremist’ NGOs. Water is a food like any other, and must have a market value,” said the president of Nestlé in 2005. This is perhaps the only man who found it in him to label the UN, which registered water as a human right in 2010 by 122 votes in favor and 41 abstentions, “extremist” – though it has to be said that, interestingly, one of the countries that abstained was Greece.

Greece’s abstention, however, might be less surprising if one considers the ongoing attempt in recent decades to privatize water supply and sewerage companies. Currently, the sale process of 51% of EYATh (Thessaloniki Water Supply and Sewerage SA) is under way, while EYDAP (Athens Water Supply and Sewerage Company) is also scheduled to be offered up.  Abroad, Portugal’s national water supply company has also embarked on the course of privatization. David Hall, director of the Public Services International Research Unit, believes that the new push for water privatization “is manipulated by the austerity policies in public spending and the cutbacks on public services imposed more strictly in the countries subject to IMF and EU bailouts.”

A profitable business in spite of the crisis

EYATh was founded in 1998, following the merger of the Thessaloniki Water Supply Organization and Thessaloniki Sewerage Organization. In 2001 the company entered the stock market and was divided into the sector of EYATh of assets that manages infrastructures, and EYATh SA. Furthermore, a 25% is ceded from the State to individuals. The company serves the greater Thessaloniki region, that is over a million and a half of people. It is worth noting that EYATh supplies the cheapest water in Europe.

Greek public water supply companies are significantly profitable in spite of the crisis.

Taking advantage of a natural monopoly such as water, the company ensures large profits. In particular, during the period 2007-2011 it achieved a profit of 75,2 million euros, and in 2012 a profit 17,8 million euros. The company also has a reserve of 35 million euros. Indeed, according to the president of the workers’ union Mr. Archontopoulos, “municipalities and other big debtors owe over 50 million euros, which shows that the investor will make payments in a very short time.” Certainly, the company’s profits are associated with the wage cuts and personnel downsizing that has occurred in recent years, as no employees have been hired since 2003, when the last call for hiring was published. Thus, while in 1998 EYATh numbered 650 employees for a smaller population and area, it currently numbers 250, with only 11 plumbers for the whole city.

In any case, Greek public water supply companies are significantly profitable in spite of the crisis. Moreover, the State and municipalities owe to water supply companies a total sum of 356 million euros, a fact which sheds a different light on the paradox of privatization: the state will lose revenue from attributed dividends, while it will have to pay its debts to the new owners of the companies with the money earned from the sale. “The winners will be the new private owners and the citizens will be the losers,” MEP Kriton Arsenis told us.

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NO JUSTICE FOR HUNGER STRIKER KOSTAS SAKKAS

Kostas Sakkas’s health is deteriorating rapidly. As of today, he is 32 days into a hunger strike, protesting his unlawful pre-trial detention by the Greek authorities, which now extends to 31 months. On June 17th, Sakkas was moved from prison to a general hospital, where doctors monitor his condition closely. Meanwhile, New Democracy, the leading party in Greece’s government coalition, responded to mounting criticism by attacking the main opposition party, SYRIZA, and saying that the opposition should “stop defending everyone accused of anarchy and terrorism”.

According to a medical report by Olga Kosmopoulou, MD at Nikaia General State Hospital, Kostas Sakkas’s life is in imminent danger. She points out that the hunger striker has already lost a lot of body mass, and his heart or other vital organs could fail at any moment.

Nevertheless, Public Prosecutor Ioannis Moraitakis proposed today that the detainee’s petition for release be rejected. The Judicial Council is scheduled to discuss the matter within the next few days.

Sakkas went on hunger strike on June 4th, the day on which the extension of his pre-trial detention was supposed to have ended.

Greek law allows for a person accused of a crime to be detained before trial for a period of up to 18 months. In exceptional cases, and provided certain legal conditions are met, this period may be extended to 30 months. In 1996, a law was passed (2408/1996), which provides that a single case against any person may not be broken up into several partial sets of charges, resulting in successive pre-trial detention terms, which would exceed the legal 18 month limit. This law was a result of several convictions Greece suffered in the European Court of Human Rights.

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