European Semester: Growth and Job vs. Water Policy Water Directors Meeting Dublin, 30/5/2012 Jacques Delsalle European Commission DG Environment

The European Semester Cycle Work performed so far The European Semester Cycle 2 studies launched WFD/FD, Water Industry/Marine Workshop on 19/2 Raising water profile of some forthcoming country-specific recommendations Study to be published in June (Freshwater only) Annual Growth Survey (Dec) Spring meeting European Council Stability or Convergence Programmes (April) Draft country-specific recommendations (May) Final country-specific recommendations. (July)

Preliminary conclusions Water as an economic asset Sustainable management water resources  maintenance of income and employment opportunities in agriculture & tourism Stabilising role of the water industry in periods of economic crisis and recession. Cost/benefits analysis achievement of EU water policy? Cost of inaction (e.g. floods) have represented a sensible share of the countries’ GDP. Ancillary benefits Water policy as components of economic growth strategies selecting priority cost-effective measures; focusing on preventive actions instead of mitigation; Further application economic instruments: removal harmful subsidies, enable financing measures, re-allocating water to the highest value uses, take into account affordability. Water efficiency: opportunities and challenges for green growth Further assess overall economic gains expected from further efficiency of water use in the industrial and agricultural sector Leakages/re-use linked to water tariffs and overall efficiency levels More efforts needed to boost innovation in the water sector.

Further work and efforts needed Awareness raising, including (or in particular) outside of the traditional water management domain. Quantifying direct economic value of water / multiplier effects of investments for key water users and local conditions; Translating ecosystem services benefits into wider territorial and economic development ; Building of coherent policy packages water/energy/CC that contribute to macro-economic growth and employment;

What next? Dissemination results studies Filling knowledge gaps Internal level (Secretariat general, DG ECFIN, REGIO, etc.) Meetings between water policy and macroeconomics, at national level would be useful Filling knowledge gaps Role of economic analysis under WFD Further integration water and economic modelling at EU level

Thank you! Jacques.Delsalle@ec.europa.eu