Changes between state and market production of public services can be analysed as 'pendulum' swings, reflecting political struggles. The extensive re-municipalisations in the water sector in France and the energy sector in Germany provide evidence on this question. This is not the result of a coordinated institutional initiative, but a reflection of common political and economic factors. The most important of these are the greater efficiency of public sector provision, and the greater degree of control over the effective achievement of public policy objectives. These are closely related to the historic factors driving public ownership in the nineteenth and twentieth centuries. A distinctive feature of this twentyfirst century tendency is the prominent role of green parties and environmental policies. The public sector paradigm has historically shown a remarkable resilience, underpinning the development of European public services for almost a century, compared with the three decades of domination by the market paradigm and its currently vacillating foundations.

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