Why is remunicipalization the new trend?
1. AN END TO DISAPPOINTMENTS
Neither municipal authorities nor the population want to be disappointed by promises, that are not kept. "Better and cheaper" was supposed to be the creed of those proposing privatizations: services of general interest would become better and cheaper as soon as they were to be privatized. Unfortunately, this promise has not materialized in most cases. Instead, wide spread privatizations lead to higher consumer prices and deteriorating services due to neglected investments.
2. MORE ROOM FOR MANOEUVRE
The local authorities want to regain the room for manoeuvre they have lost as a result of privatization. This concerns aspects such as climate protection, social pricing and quality.
3. PERMANENT REVENUE
Municipalities want to regain the permanent revenue that they are losing by outsourcing services to the private sector. This revenue can be used to invest in maintaining and improving services, which in turn benefits consumers again. Privatization, on the other hand, eliminates this regular revenue, resulting in no long-term positive effects whatsoever.
4. SERVICES OF GENERAL INTEREST, THAT ARE ORIENTED TOWARDS THE FUTURE
Municipalities want their services of general interest to be fit for the future. This requires long-term investments in infrastructure. Such long-term investments are often neglected by private companies due to private stakeholders only being interested in maximizing their short-term profits.
5. PROFITS, THAT BENEFIT THE POPULATION
At the end of the day, municipalities have an interest in the beneficial usage of profits towards the greater good of the population. In contrast to privately managed companies, the profits of public companies flow back to the population through investments. In addition to that, municipal investments increase local value creation and the competitiveness of the business location itself.