Remunicipalisation in Europe Renate Brauner Commissioner for SGI

Remunicipalisation in Europe Renate Brauner Commissioner for SGI and Municipal Enterprises of the City of Vienna Eurocities – CEEP City Dialogue, 25 th November, 2020 Providing Services of General Interest in times of Covid-19. Recovery and resilience in the EU – chance for re-municipalisation ?

We need an evidence-based debate about the role of public services. Ø Ø Study “Remunicipalisation in Europe”, Vienna (2019) By the Austrian Association for Political Consulting and Development Covers 700 remunicipalisation projects in 20 countries http: //www. politikberatung. or. at/fileadmin/studien/oeffentliche_dienstlei stungen/Rekommu_online_englisch. pdf

There are multiple reasons for remunicipalisation in Europe. Ø Expectation that through privatisation services will become better and cheaper. Ø Evidence shows that the results were higher prices and poor quality and reliability of service. Ø Privatisation resulted in job losses, stress and lower pay of staff. Ø Loss of influence to control stability, reliability and universality of SGIs.

Remunicipalisation is not an easy task. Ø Needs to be well prepared, but often the local authorities lost the necessary expertise. Ø Exchange platforms – set up by Eurocities and CEEP – could be of great help. Ø Local public suppliers must address changing needs in their populations. Ø Digitalisation is a new challenge and an opportunity to a prospective expansion of the traditional municipal service portfolio.

Remunipalisation takes different forms. Ø Repurchase of a formerly public company. Ø High risk that costs are higher than the income achieved from the original privatisation. Ø Often strong and financially powerful resistance from the new private owners (investors). Ø Also examples of newly founded public enterprises.

Public services contribute to sustainable local economies. Ø Crucial role of SGIs and public companies to the quality of life of citizens. Ø Key factor to build sustainable local economies. Ø Underestimated aspect of productivity of public capital. Ø Important function of public investment for innovation.

Financial framework for public companies Ø Post-corona recession will put cities and their municipal services under exceptional financial pressure. Ø High time for a “Golden rule” for long-term public investment in the SGP. Ø EU funds and the EU recovery and resilience facility must be accessible for urban public infrastructure projects and the creation of sustainable jobs and training programs in the area of general interest services.

Thanks! www. daseinsvorsorge-wien. at