Despite efforts from Member States to close the implementation gap of the Water Framework Directive, fewer than 40% of surface waters are achieving good or improving status, and 55% remain under pressure. Groundwater quality challenges also persist, even in areas where the quantitative status is satisfactory. The upcoming 2027 Water Framework Directive assessment is expected to drive investments in monitoring and treatment technologies, even as other regulatory requirements soften.
In Poland, the transposition of the EU’s updated cybersecurity framework, the Network and Information Security 2 Directive, has elevated cyber risk to a board-level priority. It is now expected that essential services demonstrate resilience and continuity in an increasingly digitized environment. Other European countries are set to adopt updated cybersecurity requirements in 2026, highlighting the growing connection between digital policy and the water sector, and effectively embedding digital compliance and basic cyber hygiene into water utility operations.
Although momentum behind France’s 2015 NOTRe law to consolidate water services has slowed in recent years, 2025 saw renewed activity—especially in markets like Estonia, Greece, and Croatia. These instances demonstrate how some drinking water operators are responding to increasing technical requirements and investment needs by pursuing greater scale through consolidation.
There is a growing tension between stricter compliance standards and greater sectoral flexibility, leading to mixed and often conflicting policy signals. While regulations for controlling per- and polyfluoroalkyl substances are tightening, the EU’s Omnibus Simplification Packages and recent updates to the Nitrates Directive are reducing the scope and depth of corporate sustainability reporting and due diligence requirements. Consequently, compliance incentives are softening amid geopolitical, commercial, and energy security priorities, even as tougher standards for emerging pollutants highlight the ongoing need for investment in advanced water technologies.
This policy review highlights key developments and shifts in legislation and policy impacting the water and wastewater sector across Europe, both at the national and European Union levels of government. Bluefield’s team of water experts tracks changes in the regional, national, and subnational policy landscape to assess implications for market outlooks.
