Although there is no Community definition of the term "public-private partnership" (PPP), it can generally be described as “a variation of privatisation in which elements of a service previously run solely by the public sector are provided through a partnership between the government and one or more private sector companies”.
The Communication follows a public consultation launched in April 2004 which gave interested parties the opportunity to comment on the PPP Green Paper. The main objective behind the consultation was to find out how the rules apply in practice in Member States and whether there was a need for clarification and adaptation of these rules at European level.
The Communication presents a new treatment of PPPs, as the Commission will clarify how EU rules are to be applied to the choice of private partners in institutionalised PPPs, which are public service undertakings held jointly by both a public and a private partner.
The Commission will also examine whether there is a need to legislate on concessions - this however will require an in-depth analysis before proceeding, in accordance with the principles of "Better Regulation".
Internal Market and Services Commissioner, Charlie McCreevy stated that in order for Europe to full benefit from PPPs, transparency and fair competition in the selection of private partners are required. The consultation also showed a strong demand for further Commission action.
