ECJ on Cost Recovery for Water Services under Article 9 of the Water Framework Directive: Camera Locuta Causa non Finita

In its eagerly awaited substantive decision on the scope of the principle of cost recovery for water services under Article 9 of the Water Framework Directive, the European Court of Justice found the Commission's action against Germany to be admissible, but dismissed the claim as unfounded. Without any effort to clarify the contentious concept of "water services", the European Court of Justice essentially focuses on fulfilment of the Directive's objectives through cost recovery and the authorisation of decentralised management policies. "In the absence of further claim" a partial exemption from cost recovery for certain water uses is, in principle, regarded as compatible with the fulfilment of these objectives. At the same time, the Court makes it clear that renewed action for failure to meet the objectives of the Directive or for an examination of the exemption conditions provided by the European legislator could well end with the establishment of infringement. Thus, the commission suffers defeat, but is in fact invited to take renewed action.