Moving the European Union towards a water-efficient and water-saving economy is the aim of a Communication presented by the European Commission. The objective is to open a debate on the ways the EU can address water scarcity and droughts in an environment dominated by climate change. The Communication presents an initial set of policy options and raises issues to be taken into account to ensure the availability of water for all human, economic and social activities. The Commission will report on the progress of these issues in 2008.

Environment Commissioner Stavros Dimas said: "Access to water in sufficient quantity is fundamental to the daily lives of human beings and many economic activities. The major impacts of water scarcity and droughts are expected to be made worse by climate change. We thus need an integrated approach on water because sustainable water use is absolutely vital if we are to ensure that enough water is available to all European citizens and economic activities."

Growing impact of water scarcity and drought

While Europe is by and large considered as having adequate water resources, water scarcity and droughts are increasingly becoming common place.

Droughts relate to natural conditions such as rainfall deficiency. Over the past thirty years droughts have dramatically increased in number and intensity in the European Union. The cost to the European economy over that period was at least €100 billion. In 2003, one of the most widespread droughts affected over 100 million people and about a third of the EU land area costing approximately EURO 8,7 billion.

Water scarcity is the result of a long-term imbalance with demand in excess of available water resources. In the Green Paper on adaptation to climate change presented in late June, the Commission draws attention to possible further deterioration of the water situation in Europe if temperatures keep rising and if no clear mitigation strategy is adopted.

The Commission has thus identified an initial set of policy options to be taken at European, national and regional levels to address water scarcity and droughts and mitigate their impacts within the Union. The set of proposed policies on water aims to move the EU towards a water-efficient and water-saving economy.

Policy options

An integrated approach to addressing water scarcity and droughts based on a combination of options is likely to deliver better results rather than targeting a single-issue.

At the heart of the policy options is the need to put the right price on water. The "user pays" principle needs to become the rule regardless of where the water is taken from. Efforts to introduce compulsory metering programmes are thus essential. Water savings and water efficiency need to be promoted given that there is a tremendous potential for water savings in the European Union. While it is estimated that approximately 20 per cent of the water available is wasted, recent data indicate that it could go up as high as 40 per cent. Therefore, substantial changes must be made on how water is channelled to users and how it is used. It is easy, for example, to promote the installation of water saving devices on taps, shower heads, and toilets.

On a larger scale, a proper allocation of water use between economic sectors needs to be considered. Policy making should be based on a clear "water hierarchy" meaning that water saving must become the priority. Effective water pricing and cost-effective measures for improving water demand management should also be considered before opting for additional water infrastructures. Accordingly, the integration of water sustainability and sustainable land use must become an integral part of policy making in areas such as agriculture and tourism. All activities should be adapted to the amount of water available locally.