BETA


2014/2233(INI) External impact of EU trade and investment policy on public-private initiatives in countries outside the EU

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead INTA ZAHRADIL Jan (icon: ECR ECR) RUAS Fernando (icon: PPE PPE), RODRÍGUEZ-PIÑERO Inma (icon: S&D S&D), CHARANZOVÁ Dita (icon: ALDE ALDE), BUCHNER Klaus (icon: Verts/ALE Verts/ALE)
Committee Opinion DEVE HAYES Brian (icon: PPE PPE) Marina ALBIOL GUZMÁN (icon: GUE/NGL GUE/NGL)
Committee Opinion IMCO CHARANZOVÁ Dita (icon: ALDE ALDE) Emma McCLARKIN (icon: ECR ECR), Dariusz ROSATI (icon: PPE PPE)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2015/12/01
   EC - Commission response to text adopted in plenary
Documents
2015/07/07
   EP - Results of vote in Parliament
2015/07/07
   EP - Decision by Parliament
Details

The European Parliament adopted by 530 votes to 153, with 10 abstentions, a resolution on the external impact of EU trade and investment policy on public-private initiatives in countries outside the EU.

Parliament recalled that public-private partnerships (PPPs) are a long-term tool used in government policies at international, national, regional and local level and are important as a vehicle for economic growth, innovation, competitiveness and job creation.

It considered that PPPs could a potential source of growth for EU companies and, at the same time, be useful for our partner third countries, as these PPPs could provide infrastructures, goods and services of general interest.

Recalling that PPPs should bring high added value to citizens and consumers, Parliament urged the Commission to promote a definition of PPPs that can gain international recognition as a long-term relationship between public entities and private investors geared to the provision of high-quality, accessible public services and infrastructures on the basis of terms and conditions clearly laid down in contracts.

Challenges : Parliament considered it regrettable that, so far, the EU has kept its government procurement markets largely open to international competition , while EU companies still face substantial barriers abroad. The resolution recalled that there are a number of inherent risks in infrastructure projects (in particular those relating to building, the environment, telecommunications and energy networks), and that the government, through PPPs, transfers part of the risk to the private contractor so that both can reap the benefits but also share the risks and responsibilities of such projects and ensure its successful implementation and viability.

Stressing the importance of good governance, Parliament called for appropriate levels of both flexibility and procedural safeguards to ensure transparency, non-discrimination and equal treatment.

Involving the private sector in development : Parliament stressed that EU trade, investment and development policies are interlinked. It stressed the increasing potential of PPPs to foster innovative solutions and mobilise long-term private finance and domestic resources for development objectives . It stated that PPPs can also generate innovation in technologies and business models, and build mechanisms for holding the private sector accountable. It highlighted, however, instances in which the participation of the private sector in PPPs in some developing countries has not delivered the expected results. It noted that, in consequence, a contribution of technical assistance is needed to reinforce the legal and institutional frameworks in which PPPs are developed.

Parliament noted that PPPs are high on the development agenda and are increasingly being promoted as a means of closing the infrastructure financing gap in developed and developing countries alike . Members called on EU bodies to encourage EU companies participating in PPPs in third countries, in particular in less-developed countries, to work in accordance with the principle of policy coherence, by promoting projects focused on environmental protection, poverty reduction, education, waste management or the use of renewable energies, for instance. They recognised the fact that private investment and finance are likely to be the key engine for sustainable growth , which is projected to be approximately 5% in developing countries in the coming years; recognises that such private funding can help support local economies and companies and provide decent jobs. They emphasised that future PPPs within the post-2015 development agenda should pursue poverty reduction and other sustainable development goals, and should be aligned with partner countries’ national development plans.

Potential tools to enable EU companies to engage in PPPs outside the EU : Parliament called on the Commission to work towards gaining substantial market access commitments internationally in the World Trade Organisation (WTO), and in ongoing bilateral negotiations with third countries, in a positive and reciprocal approach that allows for international competition .

It called on the Commission to:

work to eliminate administrative, procedural and technical barriers that prevent EU companies from taking part in foreign PPPs; undertake a study on the effects of the Union’s FTAs and their implementation on access to foreign PPPs by EU companies; promote the use of clear and comprehensive accounting rules at international level in order to reduce the uncertainties associated with PPPs, while, at the same time, promoting sound budgetary policies and project sustainability; ensure that EU-backed bodies such as the European Agency for Small and Medium-sized Enterprises (EASME) and the Enterprise Europe Network (EEN) can also access and share information with SMEs on how to enter PPPs in states outside the EU.

PPPs outside the EU: new jobs and growth opportunities for EU companies : Parliament is convinced that increased participation by EU companies in large-scale international PPPs could lead to substantial benefits in terms of the creation of decent jobs, productivity, competitiveness, technological capabilities and innovation development in the EU. It stressed that the work in this area must take into account, in particular, the challenges for EU-based SMEs in competing on international markets as parts of PPPs, and the need to ensure that SMEs gain concrete and fair access.

It should be noted that an alternative motion for a resolution, tabled by the GUE/NGL group, was rejected in plenary.

Documents
2015/07/07
   EP - End of procedure in Parliament
2015/07/06
   EP - Debate in Parliament
2015/06/05
   EP - Committee report tabled for plenary
Details

The Committee on International Trade adopted an own-initiative report by Jan ZAHRADIL (ECR, CZ) on the external impact of EU trade and investment policy on public-private initiatives in countries outside the EU.

Members recalled that public-private partnerships (PPPs) are a long-term tool used in government policies at international, national, regional and local level and are important as a vehicle for economic growth, innovation, competitiveness and job creation.

They believe that PPPs could a potential source of growth for EU companies and, at the same time, be useful for our partner third countries, as these PPPs could provide infrastructures, goods and services of general interest.

Recalling that PPPs should bring high added value to citizens and consumers, Members urged the Commission to promote a definition of PPPs that can gain international recognition as a long-term relationship between public entities and private investors geared to the provision of high-quality, accessible public services and infrastructures on the basis of terms and conditions clearly laid down in contracts.

Challenges : Member considered it regrettable that, so far, the EU has kept its government procurement markets largely open to international competition , while EU companies still face substantial barriers abroad. They called for appropriate levels of both flexibility and procedural safeguards to ensure transparency, non-discrimination and equal treatment.

Involving the private sector in development : Members stressed that EU trade, investment and development policies are interlinked. They stressed the increasing potential of PPPs to foster innovative solutions and mobilise long-term private finance and domestic resources for development objectives . They believe that PPPs can also generate innovation in technologies and business models, and build mechanisms for holding the private sector accountable. They stressed, however, to instances in which the participation of the private sector in PPPs in some developing countries has not delivered the expected results. They noted that, in consequence, a contribution of technical assistance is needed to reinforce the legal and institutional frameworks in which PPPs are developed.

Members noted that PPPs are high on the development agenda and are increasingly being promoted as a means of closing the infrastructure financing gap in developed and developing countries alike . They called on EU bodies to encourage EU companies participating in PPPs in third countries, in particular in less-developed countries, to work in accordance with the principle of policy coherence, by promoting projects focused on environmental protection, poverty reduction, education, waste management or the use of renewable energies, for instance.

They recognised the fact that private investment and finance are likely to be the key engine for sustainable growth , which is projected to be approximately 5% in developing countries in the coming years; recognises that such private funding can help support local economies and companies and provide decent jobs. They emphasised that future PPPs within the post-2015 development agenda should pursue poverty reduction and other sustainable development goals, and should be aligned with partner countries’ national development plans.

Potential tools to enable EU companies to engage in PPPs outside the EU : Members called on the Commission to work towards gaining substantial market access commitments internationally in the World Trade Organisation (WTO), and in ongoing bilateral negotiations with third countries, in a positive and reciprocal approach that allows for international competition .

They called on the Commission to:

work to eliminate administrative, procedural and technical barriers that prevent EU companies from taking part in foreign PPPs; undertake a study on the effects of the Union’s FTAs and their implementation on access to foreign PPPs by EU companies; promote the use of clear and comprehensive accounting rules at international level in order to reduce the uncertainties associated with PPPs, while, at the same time, promoting sound budgetary policies and project sustainability; ensure that EU-backed bodies such as the European Agency for Small and Medium-sized Enterprises (EASME) and the Enterprise Europe Network (EEN) can also access and share information with SMEs on how to enter PPPs in states outside the EU.

PPPs outside the EU: new jobs and growth opportunities for EU companies : Members are convinced that increased participation by EU companies in large-scale international PPPs could lead to substantial benefits in terms of the creation of decent jobs, productivity, competitiveness, technological capabilities and innovation development in the EU.

They stressed that the work in this area must take into account, in particular, the challenges for EU-based SMEs in competing on international markets as parts of PPPs, and the need to ensure that SMEs gain concrete and fair access.

Documents
2015/05/28
   EP - Vote in committee
2015/05/08
   EP - Committee opinion
Documents
2015/05/07
   EP - Committee opinion
Documents
2015/04/20
   EP - Amendments tabled in committee
Documents
2015/03/16
   EP - Committee draft report
Documents
2015/01/15
   EP - Committee referral announced in Parliament
2015/01/13
   EP - HAYES Brian (PPE) appointed as rapporteur in DEVE
2014/11/05
   EP - CHARANZOVÁ Dita (ALDE) appointed as rapporteur in IMCO
2014/10/07
   EP - ZAHRADIL Jan (ECR) appointed as rapporteur in INTA

Documents

Activities

Votes

A8-0182/2015 - Jan Zahradil - résolution (commission INTA) #

2015/07/07 Outcome: +: 530, -: 153, 0: 10
IT PL DE RO ES BG GB PT CZ BE SK HU NL FI HR DK LT AT LV SI MT FR LU SE EE IE CY EL
Total
67
48
88
30
47
16
72
19
21
16
12
19
23
13
11
12
10
16
8
8
6
70
6
17
5
10
4
18
icon: PPE PPE
206

Denmark PPE

For (1)

1
2

Luxembourg PPE

3

Estonia PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
173
3

Netherlands S&D

3

Croatia S&D

2

Latvia S&D

1

Slovenia S&D

For (1)

1

Malta S&D

3

Luxembourg S&D

For (1)

1
5

Estonia S&D

For (1)

1

Ireland S&D

For (1)

1

Cyprus S&D

2
icon: ECR ECR
68

Italy ECR

For (1)

1

Bulgaria ECR

2

Czechia ECR

2

Netherlands ECR

2
2

Croatia ECR

For (1)

1

Lithuania ECR

1

Latvia ECR

For (1)

1

Greece ECR

Against (1)

1
icon: ALDE ALDE
63

Romania ALDE

2

United Kingdom ALDE

1

Croatia ALDE

2

Denmark ALDE

2

Austria ALDE

For (1)

1

Latvia ALDE

1

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

2

Ireland ALDE

For (1)

1
icon: EFDD EFDD
43

Poland EFDD

1

Czechia EFDD

Against (1)

1

France EFDD

1

Sweden EFDD

2
icon: NI NI
12

Poland NI

Against (1)

1

Germany NI

2

United Kingdom NI

For (1)

1

Hungary NI

2

France NI

Against (1)

1
icon: ENF ENF
33

Poland ENF

For (1)

1

United Kingdom ENF

Against (1)

1

Belgium ENF

Abstain (1)

1

Netherlands ENF

Against (2)

2

Austria ENF

3
icon: GUE/NGL GUE/NGL
47

Italy GUE/NGL

3

United Kingdom GUE/NGL

Against (1)

1

Portugal GUE/NGL

Abstain (1)

3

Netherlands GUE/NGL

3

Finland GUE/NGL

Against (1)

1

Denmark GUE/NGL

Against (1)

1
4

Cyprus GUE/NGL

Against (1)

1
icon: Verts/ALE Verts/ALE
47

United Kingdom Verts/ALE

6

Belgium Verts/ALE

Against (1)

1

Hungary Verts/ALE

2

Netherlands Verts/ALE

2

Finland Verts/ALE

Against (1)

1

Croatia Verts/ALE

Against (1)

1

Denmark Verts/ALE

Against (1)

1

Lithuania Verts/ALE

Against (1)

1

Austria Verts/ALE

3

Latvia Verts/ALE

Against (1)

1

Slovenia Verts/ALE

Against (1)

1

Luxembourg Verts/ALE

Against (1)

1
4

Estonia Verts/ALE

Against (1)

1
AmendmentsDossier
248 2014/2233(INI)
2015/03/30 DEVE 74 amendments...
source: 552.099
2015/04/01 IMCO 46 amendments...
source: 554.635
2015/04/20 INTA 128 amendments...
source: 554.830

History

(these mark the time of scraping, not the official date of the change)

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  • date: 2015-06-05T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2015-0182&language=EN title: A8-0182/2015 summary: The Committee on International Trade adopted an own-initiative report by Jan ZAHRADIL (ECR, CZ) on the external impact of EU trade and investment policy on public-private initiatives in countries outside the EU. Members recalled that public-private partnerships (PPPs) are a long-term tool used in government policies at international, national, regional and local level and are important as a vehicle for economic growth, innovation, competitiveness and job creation. They believe that PPPs could a potential source of growth for EU companies and, at the same time, be useful for our partner third countries, as these PPPs could provide infrastructures, goods and services of general interest. Recalling that PPPs should bring high added value to citizens and consumers, Members urged the Commission to promote a definition of PPPs that can gain international recognition as a long-term relationship between public entities and private investors geared to the provision of high-quality, accessible public services and infrastructures on the basis of terms and conditions clearly laid down in contracts. Challenges : Member considered it regrettable that, so far, the EU has kept its government procurement markets largely open to international competition , while EU companies still face substantial barriers abroad. They called for appropriate levels of both flexibility and procedural safeguards to ensure transparency, non-discrimination and equal treatment. Involving the private sector in development : Members stressed that EU trade, investment and development policies are interlinked. They stressed the increasing potential of PPPs to foster innovative solutions and mobilise long-term private finance and domestic resources for development objectives . They believe that PPPs can also generate innovation in technologies and business models, and build mechanisms for holding the private sector accountable. They stressed, however, to instances in which the participation of the private sector in PPPs in some developing countries has not delivered the expected results. They noted that, in consequence, a contribution of technical assistance is needed to reinforce the legal and institutional frameworks in which PPPs are developed. Members noted that PPPs are high on the development agenda and are increasingly being promoted as a means of closing the infrastructure financing gap in developed and developing countries alike . They called on EU bodies to encourage EU companies participating in PPPs in third countries, in particular in less-developed countries, to work in accordance with the principle of policy coherence, by promoting projects focused on environmental protection, poverty reduction, education, waste management or the use of renewable energies, for instance. They recognised the fact that private investment and finance are likely to be the key engine for sustainable growth , which is projected to be approximately 5% in developing countries in the coming years; recognises that such private funding can help support local economies and companies and provide decent jobs. They emphasised that future PPPs within the post-2015 development agenda should pursue poverty reduction and other sustainable development goals, and should be aligned with partner countries’ national development plans. Potential tools to enable EU companies to engage in PPPs outside the EU : Members called on the Commission to work towards gaining substantial market access commitments internationally in the World Trade Organisation (WTO), and in ongoing bilateral negotiations with third countries, in a positive and reciprocal approach that allows for international competition . They called on the Commission to: work to eliminate administrative, procedural and technical barriers that prevent EU companies from taking part in foreign PPPs; undertake a study on the effects of the Union’s FTAs and their implementation on access to foreign PPPs by EU companies; promote the use of clear and comprehensive accounting rules at international level in order to reduce the uncertainties associated with PPPs, while, at the same time, promoting sound budgetary policies and project sustainability; ensure that EU-backed bodies such as the European Agency for Small and Medium-sized Enterprises (EASME) and the Enterprise Europe Network (EEN) can also access and share information with SMEs on how to enter PPPs in states outside the EU. PPPs outside the EU: new jobs and growth opportunities for EU companies : Members are convinced that increased participation by EU companies in large-scale international PPPs could lead to substantial benefits in terms of the creation of decent jobs, productivity, competitiveness, technological capabilities and innovation development in the EU. They stressed that the work in this area must take into account, in particular, the challenges for EU-based SMEs in competing on international markets as parts of PPPs, and the need to ensure that SMEs gain concrete and fair access.
  • date: 2015-07-06T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20150706&type=CRE title: Debate in Parliament
  • date: 2015-07-07T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=25840&l=en title: Results of vote in Parliament
  • date: 2015-07-07T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2015-0250 title: T8-0250/2015 summary: The European Parliament adopted by 530 votes to 153, with 10 abstentions, a resolution on the external impact of EU trade and investment policy on public-private initiatives in countries outside the EU. Parliament recalled that public-private partnerships (PPPs) are a long-term tool used in government policies at international, national, regional and local level and are important as a vehicle for economic growth, innovation, competitiveness and job creation. It considered that PPPs could a potential source of growth for EU companies and, at the same time, be useful for our partner third countries, as these PPPs could provide infrastructures, goods and services of general interest. Recalling that PPPs should bring high added value to citizens and consumers, Parliament urged the Commission to promote a definition of PPPs that can gain international recognition as a long-term relationship between public entities and private investors geared to the provision of high-quality, accessible public services and infrastructures on the basis of terms and conditions clearly laid down in contracts. Challenges : Parliament considered it regrettable that, so far, the EU has kept its government procurement markets largely open to international competition , while EU companies still face substantial barriers abroad. The resolution recalled that there are a number of inherent risks in infrastructure projects (in particular those relating to building, the environment, telecommunications and energy networks), and that the government, through PPPs, transfers part of the risk to the private contractor so that both can reap the benefits but also share the risks and responsibilities of such projects and ensure its successful implementation and viability. Stressing the importance of good governance, Parliament called for appropriate levels of both flexibility and procedural safeguards to ensure transparency, non-discrimination and equal treatment. Involving the private sector in development : Parliament stressed that EU trade, investment and development policies are interlinked. It stressed the increasing potential of PPPs to foster innovative solutions and mobilise long-term private finance and domestic resources for development objectives . It stated that PPPs can also generate innovation in technologies and business models, and build mechanisms for holding the private sector accountable. It highlighted, however, instances in which the participation of the private sector in PPPs in some developing countries has not delivered the expected results. It noted that, in consequence, a contribution of technical assistance is needed to reinforce the legal and institutional frameworks in which PPPs are developed. Parliament noted that PPPs are high on the development agenda and are increasingly being promoted as a means of closing the infrastructure financing gap in developed and developing countries alike . Members called on EU bodies to encourage EU companies participating in PPPs in third countries, in particular in less-developed countries, to work in accordance with the principle of policy coherence, by promoting projects focused on environmental protection, poverty reduction, education, waste management or the use of renewable energies, for instance. They recognised the fact that private investment and finance are likely to be the key engine for sustainable growth , which is projected to be approximately 5% in developing countries in the coming years; recognises that such private funding can help support local economies and companies and provide decent jobs. They emphasised that future PPPs within the post-2015 development agenda should pursue poverty reduction and other sustainable development goals, and should be aligned with partner countries’ national development plans. Potential tools to enable EU companies to engage in PPPs outside the EU : Parliament called on the Commission to work towards gaining substantial market access commitments internationally in the World Trade Organisation (WTO), and in ongoing bilateral negotiations with third countries, in a positive and reciprocal approach that allows for international competition . It called on the Commission to: work to eliminate administrative, procedural and technical barriers that prevent EU companies from taking part in foreign PPPs; undertake a study on the effects of the Union’s FTAs and their implementation on access to foreign PPPs by EU companies; promote the use of clear and comprehensive accounting rules at international level in order to reduce the uncertainties associated with PPPs, while, at the same time, promoting sound budgetary policies and project sustainability; ensure that EU-backed bodies such as the European Agency for Small and Medium-sized Enterprises (EASME) and the Enterprise Europe Network (EEN) can also access and share information with SMEs on how to enter PPPs in states outside the EU. PPPs outside the EU: new jobs and growth opportunities for EU companies : Parliament is convinced that increased participation by EU companies in large-scale international PPPs could lead to substantial benefits in terms of the creation of decent jobs, productivity, competitiveness, technological capabilities and innovation development in the EU. It stressed that the work in this area must take into account, in particular, the challenges for EU-based SMEs in competing on international markets as parts of PPPs, and the need to ensure that SMEs gain concrete and fair access. It should be noted that an alternative motion for a resolution, tabled by the GUE/NGL group, was rejected in plenary.
  • date: 2015-07-07T00:00:00 type: End of procedure in Parliament body: EP
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  • The Committee on International Trade adopted an own-initiative report by Jan ZAHRADIL (ECR, CZ) on the external impact of EU trade and investment policy on public-private initiatives in countries outside the EU.

    Members recalled that public-private partnerships (PPPs) are a long-term tool used in government policies at international, national, regional and local level and are important as a vehicle for economic growth, innovation, competitiveness and job creation.

    They believe that PPPs could a potential source of growth for EU companies and, at the same time, be useful for our partner third countries, as these PPPs could provide infrastructures, goods and services of general interest.

    Recalling that PPPs should bring high added value to citizens and consumers, Members urged the Commission to promote a definition of PPPs that can gain international recognition as a long-term relationship between public entities and private investors geared to the provision of high-quality, accessible public services and infrastructures on the basis of terms and conditions clearly laid down in contracts.

    Challenges: Member considered it regrettable that, so far, the EU has kept its government procurement markets largely open to international competition, while EU companies still face substantial barriers abroad. They called for appropriate levels of both flexibility and procedural safeguards to ensure transparency, non-discrimination and equal treatment.

    Involving the private sector in development: Members stressed that EU trade, investment and development policies are interlinked. They stressed the increasing potential of PPPs to foster innovative solutions and mobilise long-term private finance and domestic resources for development objectives. They believe that PPPs can also generate innovation in technologies and business models, and build mechanisms for holding the private sector accountable. They stressed, however, to instances in which the participation of the private sector in PPPs in some developing countries has not delivered the expected results. They noted that, in consequence, a contribution of technical assistance is needed to reinforce the legal and institutional frameworks in which PPPs are developed.

    Members noted that PPPs are high on the development agenda and are increasingly being promoted as a means of closing the infrastructure financing gap in developed and developing countries alike. They called on EU bodies to encourage EU companies participating in PPPs in third countries, in particular in less-developed countries, to work in accordance with the principle of policy coherence, by promoting projects focused on environmental protection, poverty reduction, education, waste management or the use of renewable energies, for instance.

    They recognised the fact that private investment and finance are likely to be the key engine for sustainable growth, which is projected to be approximately 5% in developing countries in the coming years; recognises that such private funding can help support local economies and companies and provide decent jobs. They emphasised that future PPPs within the post-2015 development agenda should pursue poverty reduction and other sustainable development goals, and should be aligned with partner countries’ national development plans.

    Potential tools to enable EU companies to engage in PPPs outside the EU: Members called on the Commission to work towards gaining substantial market access commitments internationally in the World Trade Organisation (WTO), and in ongoing bilateral negotiations with third countries, in a positive and reciprocal approach that allows for international competition.

    They called on the Commission to:

    • work to eliminate administrative, procedural and technical barriers that prevent EU companies from taking part in foreign PPPs; 
    • undertake a study on the effects of the Union’s FTAs and their implementation on access to foreign PPPs by EU companies;
    • promote the use of clear and comprehensive accounting rules at international level in order to reduce the uncertainties associated with PPPs, while, at the same time, promoting sound budgetary policies and project sustainability; 
    • ensure that EU-backed bodies such as the European Agency for Small and Medium-sized Enterprises (EASME) and the Enterprise Europe Network (EEN) can also access and share information with SMEs on how to enter PPPs in states outside the EU. 

    PPPs outside the EU: new jobs and growth opportunities for EU companies: Members are convinced that increased participation by EU companies in large-scale international PPPs could lead to substantial benefits in terms of the creation of decent jobs, productivity, competitiveness, technological capabilities and innovation development in the EU.

    They stressed that the work in this area must take into account, in particular, the challenges for EU-based SMEs in competing on international markets as parts of PPPs, and the need to ensure that SMEs gain concrete and fair access.

activities/4/docs/0/text
  • The European Parliament adopted by 530 votes to 153, with 10 abstentions, a resolution on the external impact of EU trade and investment policy on public-private initiatives in countries outside the EU.

    Parliament recalled that public-private partnerships (PPPs) are a long-term tool used in government policies at international, national, regional and local level and are important as a vehicle for economic growth, innovation, competitiveness and job creation.

    It considered that PPPs could a potential source of growth for EU companies and, at the same time, be useful for our partner third countries, as these PPPs could provide infrastructures, goods and services of general interest.

    Recalling that PPPs should bring high added value to citizens and consumers, Parliament urged the Commission to promote a definition of PPPs that can gain international recognition as a long-term relationship between public entities and private investors geared to the provision of high-quality, accessible public services and infrastructures on the basis of terms and conditions clearly laid down in contracts.

    Challenges: Parliament considered it regrettable that, so far, the EU has kept its government procurement markets largely open to international competition, while EU companies still face substantial barriers abroad. The resolution recalled that there are a number of inherent risks in infrastructure projects (in particular those relating to building, the environment, telecommunications and energy networks), and that the government, through PPPs, transfers part of the risk to the private contractor so that both can reap the benefits but also share the risks and responsibilities of such projects and ensure its successful implementation and viability.

    Stressing the importance of good governance, Parliament called for appropriate levels of both flexibility and procedural safeguards to ensure transparency, non-discrimination and equal treatment.

    Involving the private sector in development: Parliament stressed that EU trade, investment and development policies are interlinked. It stressed the increasing potential of PPPs to foster innovative solutions and mobilise long-term private finance and domestic resources for development objectives. It stated that PPPs can also generate innovation in technologies and business models, and build mechanisms for holding the private sector accountable. It highlighted, however, instances in which the participation of the private sector in PPPs in some developing countries has not delivered the expected results. It noted that, in consequence, a contribution of technical assistance is needed to reinforce the legal and institutional frameworks in which PPPs are developed.

    Parliament noted that PPPs are high on the development agenda and are increasingly being promoted as a means of closing the infrastructure financing gap in developed and developing countries alike. Members called on EU bodies to encourage EU companies participating in PPPs in third countries, in particular in less-developed countries, to work in accordance with the principle of policy coherence, by promoting projects focused on environmental protection, poverty reduction, education, waste management or the use of renewable energies, for instance. They recognised the fact that private investment and finance are likely to be the key engine for sustainable growth, which is projected to be approximately 5% in developing countries in the coming years; recognises that such private funding can help support local economies and companies and provide decent jobs. They emphasised that future PPPs within the post-2015 development agenda should pursue poverty reduction and other sustainable development goals, and should be aligned with partner countries’ national development plans.

    Potential tools to enable EU companies to engage in PPPs outside the EU: Parliament called on the Commission to work towards gaining substantial market access commitments internationally in the World Trade Organisation (WTO), and in ongoing bilateral negotiations with third countries, in a positive and reciprocal approach that allows for international competition.

    It called on the Commission to:

    • work to eliminate administrative, procedural and technical barriers that prevent EU companies from taking part in foreign PPPs; 
    • undertake a study on the effects of the Union’s FTAs and their implementation on access to foreign PPPs by EU companies;
    • promote the use of clear and comprehensive accounting rules at international level in order to reduce the uncertainties associated with PPPs, while, at the same time, promoting sound budgetary policies and project sustainability; 
    • ensure that EU-backed bodies such as the European Agency for Small and Medium-sized Enterprises (EASME) and the Enterprise Europe Network (EEN) can also access and share information with SMEs on how to enter PPPs in states outside the EU. 

    PPPs outside the EU: new jobs and growth opportunities for EU companies: Parliament is convinced that increased participation by EU companies in large-scale international PPPs could lead to substantial benefits in terms of the creation of decent jobs, productivity, competitiveness, technological capabilities and innovation development in the EU. It stressed that the work in this area must take into account, in particular, the challenges for EU-based SMEs in competing on international markets as parts of PPPs, and the need to ensure that SMEs gain concrete and fair access.

    It should be noted that an alternative motion for a resolution, tabled by the GUE/NGL group, was rejected in plenary.

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