From Privatisation to Remunicipalisation: How Returning to Public Control of Water Services Benefits Hungarian Society

Abstract

This article examines Hungary’s transition from the privatisation of water services in the early 1990s to a reassertion of public control by the 2010s. It situates Hungary’s trajectory within the broader context of post-Soviet Central and Eastern European reforms and explores the socio-economic and regulatory implications of privatising essential services without first establishing a stable market framework. Through a critical historical and legal analysis, the paper investigates the motivations behind water sector privatisation, the challenges encountered, and the subsequent remunicipalisation trend prompted by public dissatisfaction with private service delivery. The study highlights the continued primacy of national regulatory discretion in water governance across the European Union, in contrast to more centralised sectors such as energy or telecommunications. Comparative insights from countries like France, and the United Kingdom further contex- tualise Hungary’s experience. Ultimately, the paper evaluates whether the consolidation of water utilities and remunicipalisation efforts served the long-term interests of Hungar- ian society and contributed to more equitable and efficient water service provision.