Bankwatch input to EC consultation on an EU initiative on concessions
Policy comments | 30 September 2010
The European Commission (EC) has recently invited inputs to its consultation on an initiative on concessions that aims to improve the rules for concession contracts in the EU. PPP advocates insist on their cost-effectiveness, timely completion rates and the sharing of financial risk – yet so far the evidence for these claims is decidedly mixed.
In fact, a closer look at reality suggests an array of dangers and poor value for money and highlights the potential long-term pressure on public budgets and social services, especially in smaller economies in central and eastern Europe. In our comments we call for a thorough and independent assessment of the performance of PPPs so far and their financial and social impact.