Public Private Partnership in Europe - Challenges During The Crisis

In many countries, anti-crisis public measures focus on higher public investment or investment in public objectives, like investment in infrastructure projects as an important mean to maintain economic activity during the crisis and support a rapid return to sustained economic growth. An instrument to realize these investments is the Public-Private Partnership (hereafter PPP). Nevertheless, PPP’s are vulnerable to the economic impact of the crisis. Although the final consequences and duration of the crisis are not yet known, the effects on PPP’s can already be identified and estimated. The crisis has made the conditions for this instrument more difficult. Despite some signs of recovery, the volumes and values of the PPP projects currently closing is still significantly below the level reached before the crisis.