11.2.2.1 Government procedures for project approval in EU

The previous paragraph gives rise to the question whether water management is to be considered a purely governmental task or perhaps a shared responsibility of government authorities and business society. In the EU, the Water Framework Directive establishes a framework for the protection of inland surface waters, transitional waters, coastal waters and groundwater (EU Water Framework Directive, 2000). In addition, before companies can start a new project, such as a production plant or building a dam, they mustapply for consent and permits through governmental approval procedures. Such procedures deal with many aspects of a project, amongst which its environmental impact. Environmental impact has by law to be assessed, i.e. the so-called 'environmental impact assessment' (EIA; EC EIA Directive). Article 3 of this Directive stipulates that an EIA should identify, describe and assess the direct and indirect effects of a project on inter alia ground water. Once a project has been formally approved and once the enterprise is up and running, it pays for its water consumption, alongside other municipal or national taxes. In the Netherlands, water supply and management, including the regulation of groundwater and river levels and the maintenance of dikes, dams and (canal) locks, are considered to be government tasks (VROM). Consequently, the supervision of the overall situation and any decision concerning precautionary measures, such as water rationing, are taken by the State. There is no defined role for enterprises therein other than adapting to given situations. At the same time, however, the European water industry also feels a responsibility.

The European water industry has also realised that water scarcity can generate (business) risks. Its representatives, Eureau, have indicated that they do not believe the present use of water to be sustainable. In a drive to reconcile the EU agricultural policy with the Water Framework Directive and hoping to pave the way for policies on sustainable use of water, Eureau urged farmers to record their exact water consumption and to opt for more efficient irrigation methods (EurActiv, 2009).