EU regions to focus on public-private deals

EU regions need to develop strong public-private partnerships if they want to provide better quality services, senior European and regional figures will say this week.

This year’s European week of regions and cities, organised jointly by the European commission and the Committee of the Regions, will focus on how the public and private sectors can work together to create better jobs and stronger economic growth.

“EU regional policy needs to support with vigour all new financing initiatives in order to make an effective contribution… to the creation of an entrepreneurial culture within the 254 regions in Europe,” regional policy commissioner Danuta Hübner told the Regional Review magazine, an official media partner of the event.

“Public-private partnerships are a key instrument in support of this.”

But EU rules on public-private partnerships – and the related issue of public procurement – remain complicated, an issue that internal market commissioner Charlie McCreevy is ready to tackle.

“I am currently giving thought to how – aside from planned legislative and communication initiatives – we might be able to get ‘more bang for our buck’,” he writes in the magazine.

“But there is no one-size fits all solution to the problems,” he warns, pointing to the tangled web of co-financing agreements – a web that becomes even more complicated when it involves operators across national and regional borders.

Barbara Weiler MEP, the European parliament’s rapporteur on PPPs, agrees that greater legal certainty is needed if public authorities are to benefit from additional funding opportunities.

She points out in particular the growing use of public-public agreements – co-financing between public authorities in two or more EU regions or countries – and calls for clear new rules to help promote the use of such agreements.

“This situation must be corrected, although not by further decisions from the European courts or ‘interpretive communications’ from the commission.”

“It must be done through the normal legislative procedure – proposed by the commission for amendment and/or approval by parliament and council.”

It is not just politicians that want to see clearer rules – industry is also keen to have a level playing field for PPPs throughout Europe.

Craig Barrett, the chairman of US chip maker Intel, told the Regional Review that the EU “needs to address the incentives that are required to engage more private companies in this process”.

“Private industry has more to offer than just funding, as it can bring commercial rigour and expertise.”

“But if policymakers in Europe are serious about getting more investment from the private sector, then the environment in Europe needs to be better suited to this.”

Barrett is one of several high-profile figures from the private sector in Brussels this week for the Open Days event, which will be officially opened by commission president José Manuel Barroso on Monday evening.

The Intel chief, along with senior figures from Siemens, Alcatel and France Telecom, among others, will attend an Investors Café at the Committee of the Regions building in Brussels, offering public authorities a chance to share best-practice ideas with potential private sector partners.

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