Publications

Can Public Private Partnerships (PPPs) lever investment to get Europe out of economic crisis?

7 November 2012
Claire Dhéret (Senior Policy Analyst and FutureLab Europe Programme Leader), Hans Martens (Senior Adviser to EPC on energy, public service reform and CHES) and Fabian Zuleeg (Chief Executive and Chief Economist)



To overcome Europe's deep economic crisis, investment is crucial. But with public finances under severe strain and a limited EU budget, private-sector investment will have to be a key driving force. This report produced by the European Policy Centre – with input from the European Investment Bank and other stakeholders – focuses on analysing stakeholders’ perceptions of the role that Public-Private Partnerships (PPPs) and the just-launched Project Bonds Initiative (PBI) could play in responding to Europe’s current challenges.

It shows that there is additional scope to develop PPPs but a number of barriers will have to be overcome, including the need for EU leaders to show leadership if the PBI is to move from the status of an experimental pilot to a sustainable part of the financing mix for Europe's infrastructure needs. But PPPs and the PBI are clearly not the silver bullet that can deliver all the investment needed. This EPC report thus also calls for the development of new instruments to encourage public-private cooperation and to leverage private investment in order to achieve European objectives.

Can Public Private Partnerships (PPPs) lever investment to get Europe out of economic crisis?