By Henry Teitelbaum, Editor, P3 Planet.com
One would have thought that improving capital market conditions in Europe along with new project finance models and multilateral facilities would quickly unlock private investment in capital projects.
But that hope, like so much else in Europe, seems forlorn. Five years after the crisis began, even modest public spending to spur job creation and recovery in the region is being trumped by pressure to cut budget deficits and implement structural reform. This leaves virtually no scope to invest without decimating the benefits of the unemployed and inviting explosive social unrest.
It is a fatal policy error that is unnecessarily prolonging the economic slump and the time it will take to put government finances on a sustainable path. Continue reading European infrastructure investment still stuck in neutral