Public-private partnerships (PPPs) are waning in western Europe. Before the 2008 global financial crisis, the use of partnerships between the government and private investors to finance infrastructure were growing, but the market has since seen a decline. Governments went into austerity mode, neglecting PPP plans. But with an abundance of financing opportunities available, where could new deal flow come from and what are the challenges?
A growing market in the first few years of the 21st century saw European PPP volumes rise from some €15bn in 2000 to highs of near €30bn in 2007. Some €188bn of deals closed between 2000 and 2008, according to data from the European Investment Bank (EIB).
