The Principle of Full Cost Recovery in the EU-Water Framework Directive - Genesis and Content

The requirement of full cost recovery for water services including environmental and resource costs in accordance with the polluter pays principle in Article 9 EU-Water Framework Directive is one of the key concepts of the EU Water Framework Directive that entered into force in 2000. It is a unique provision in the history of European environmental law. As its scope, its degree of obligation and its timeframe were intensely contested, and as different economic concepts were facing each other, it is difficult to read and interpret the final version of Article 9 WFD correctly. The wording of the provision is a compromise between the Council's and the Parliament's versions. Article 9 now contains a two-step concept for the achievement of the aim. The uniform implementation of the full cost recovery calls for common accounting standards for the calculation of financial costs and a common methodology for the estimation of environmental and resource costs at the European level. This contribution develops a consistent concept of its normative content by reference to its genesis.