THE OPPORTUNITY OF FINANCING THE LOCAL COLLECTIVITIES THROUGH PUBLIC-PRIVATE PARTNERSHIP

Abstract

This paper’s purpose is to analyse the financial situation of the local authorities in the EU countries and to consider alternative funding through public-private partnership. Both because of the economic and financial crises that has affected the earned income but also because of the decentralization process that has enlarged the responsibilities, local authorities are put into difficulty in providing public services at a higher quality level and starting new public investments.

Empirical research on this track will reveal the public role that the public-private partnership can play at a local level, but also various obstacles that inhibit its usage in some of the EU countries. In this article we also aim to determine certain methods to overcome the obstacles that stand in the way of increasing public-private use at a local level. Thus, we emphasize the context in which public-private partnership is a local solution and that is sustainable on a long term. To achieve this objective we will make a foray into the literature and the specialty studies in the field and we will analyse the factual situation that exists at the level of local communities in EU countries.