Annex B. Data and method

Current levels of expenditure on water supply and sanitation are based on Eurostat data, which combines a range of data sets covering water-related public and household expenditures.

Business-as-usual scenario projections on future expenditures for water supply and sanitation are driven by the growth in urban population. Additional scenarios were developed for water supply and sanitation to factor in such drivers as compliance with current and emerging regulation. The additional scenarios are based on available expenditure reported by countries and each countries distance to compliance with articles three, four, and five.

Projections on future expenditures for flood protection combine estimates of exposure (of population, assets and GDP) to risks of coastal or river floods.

The characterisation of past sources of financing in each country is derived from data on current levels of expenditures, as well as complementary data sources on debt finance and EU funding.

Countries’ financing capacities are proxied by analysing latitude in 3 areas: ability to raise the price of water services (taking into account affordability concerns), ability to increase public spending (based on taxes or borrowing), and ability to tap into private finance.

A separate report presents the methods and data used in more details.