Europe is investing more in water services, but challenges are growing
Investment in Europe’s water services is rising, but network renewal and water loss reduction show little progress. Meanwhile, climate change is becoming a greater concern and revenue from water bills is struggling to keep pace with investment.
Our Europe’s Water in Figures 2026 Snapshot, based on data from our members across Europe, highlights five key trends.
1. Investment is rising, but costs are too
Aggregate European investment is up 16% compared with the 2025 Snapshot, with increases in most responding countries. Since 2017, investment has risen by 44%, broadly in line with the 42% increase in construction prices. Much of the additional spending has therefore been absorbed by higher costs.
2. Network renewal and water loss remain challenges
Despite higher investment, aggregate figures show little improvement in network renewal or water loss reduction. Ageing infrastructure remains the sector’s leading concern. Investment must deliver tangible improvements while addressing rising costs, stricter requirements and climate pressures.
3. Revenue is not keeping pace with investment
Revenue from water bills is growing much more slowly than investment, raising questions about how to finance essential infrastructure improvements. Sustainable cost recovery and alternative funding sources may be needed, depending on national circumstances, while ensuring services remain affordable.
4. Climate change is moving up the agenda
More EurEau members now rank climate change and water availability among their three biggest challenges. Droughts, flooding and extreme weather reinforce the need to build resilience into infrastructure planning and water resource management.
5. Protecting water resources is essential
Pollutants such as PFAS, micropollutants and pesticides put pressure on water resources. Preventing pollution at source can protect drinking water quality and reduce the need for costly treatment. Full implementation of the EU Water Resilience Strategy is therefore important.
Turning investment into results
The Snapshot shows a sector investing more to meet growing demands, but higher spending alone is not enough. Europe needs investment that delivers better infrastructure, sustainable funding and effective action on water scarcity and pollution.
Water resilience depends on making investment count, funding services sustainably and protecting the water resources on which people and the economy depend.
Explore the data in EurEau’s Europe’s Water in Figures 2026 Snapshot.