Public-Private Partnerships in the European Union Public-Private Partnerships in the European Union aims to be a reference point for academics, researchers and policy makers. The book intends to capture the spirit and pulse of discourse by disseminating outstanding research on strategic multi-disciplinary issues of public- private partnerships as a distinctive feature of public sector management, including privatisation, regulation, procurement, outsourcing, insourcing and service sharing, from legal, economic and public policy perspectives and aims to influence current and future debate in public sector management in the European Union and its member states and across other continents. Christopher Bovis, FRSA, is Professor of International Business at the Business School of the University of Hull. He is Editor-in-Chief of the European Pro- curement & Public Private Partnership Law Review, published by Lexxion. Routledge Critical Studies in Public Management Edited by Stephen Osborne The study and practice of public management has undergone profound changes across the world. Over the last quarter century, we have seen (cid:129) increasing criticism of public administration as the over-arching frame- work for the provision of public services, (cid:129) the rise (and critical appraisal) of the ‘New Public Management’ as an emergent paradigm for the provision of public services, (cid:129) the transformation of the ‘public sector’ into the cross-sectoral provi- sion of public services, and (cid:129) the growth of the governance of inter-organizational relationships as an essential element in the provision of public services In reality these trends have not so much replaced each other as elided or co-existed together—the public policy process has not gone away as a legitimate topic of study, intra-organizational management continues to be essential to the efficient provision of public services, whist the governance of inter-organizational and inter-sectoral relationships is now essential to the effective provision of these services. Further, whilst the study of public management has been enriched by contribution of a range of insights from the ‘mainstream’ management lit- erature it has also contributed to this literature in such areas as networks and inter-organizational collaboration, innovation and stakeholder theory. This series is dedicated to presenting and critiquing this important body of theory and empirical study. It will publish books that both explore and evaluate the emergent and developing nature of public administration, management and governance (in theory and practice) and examine the relationship with and contribution to the over-arching disciplines of man- agement and organizational sociology. Books in the series will be of interest to academics and researchers in this field, students undertaking advanced studies of it as part of their undergrad- uate or postgraduate degree and reflective policy makers and practitioners. 1 Unbundled Government 9 Public Policy beyond the A Critical Analysis of the Global Financial Crisis Trend to Agencies, Quangos and An International Comparative Study Contractualisation Philip Haynes Edited by Christopher Pollitt and Colin Talbot 10 Rethinking Public-Private Partnerships 2 The Study of Public Management S trategies for Turbulent Times in Europe and the US Edited by Carsten Greve and A Competitive Analysis of National Graeme Hodge Distinctiveness Edited by Walter Kickert 11 Public-Private Partnerships in the USA 3 Managing Complex Governance Lessons to be Learned for the Systems United Kingdom Dynamics, Self-Organization and Anthony Wall Coevolution in Public Investments Edited by Geert Teisman, Arwin 12 Trust and Confi dence in van Buuren and Lasse Gerrits Government and Public Services Edited by Sue Llewellyn, Stephen 4 Making Public Services Brookes and Ann Mahon Management Critical Edited by Graeme Currie, 13 Critical Leadership Jackie Ford, Nancy Harding and Leader-Follower Dynamics Mark Learmonth in a Public Organization Paul Evans, John Hassard and 5 Social Accounting and Public Paula Hyde Management A ccountability for the Common Good 14 Policy Transfer and Learning in Edited by Stephen P. Osborne and Public Policy and Management Amanda Ball International Contexts, Content and Development 6 Public Management and Edited by Peter Carroll and Complexity Theory Richard Common Richer Decision-Making in Public Services 15 Crossing Boundaries in Public Mary Lee Rhodes, Joanne Murphy, Management and Policy Jenny Muir and John A. Murray The International Experience Edited by Janine O’Flynn, Deborah 7 New Public Governance, the Blackman and John Halligan Third Sector, and Co-Production Edited by Victor Pestoff, Taco 16 Public-Private Partnerships in Brandsen and Bram Verschuere the European Union Christopher Bovis 8 Branding in Governance and Public Management Jasper Eshuis and Erik-Hans Klijn This page intentionally left blank Public-Private Partnerships in the European Union Christopher Bovis First published 2014 by Routledge 711 Third Avenue, New York, NY 10017 Simultaneously published in the UK by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2014 Taylor & Francis The right of Christopher Bovis to be identified as the author of the editorial material has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data Bovis, Christopher. Public-private partnerships in the European Union / by Christopher Bovis. pages cm. — (Routledge critical studies in public management ; 16) Includes bibliographical references and index. 1. Public-private sector cooperation—European Union countries. 2. Public contracts—European Union countries. I. Title. HD3872.E85B68 2013 338.8′7—dc23 2013012685 ISBN: 978-0-415-34993-2 (hbk) ISBN: 978-0-203-69572-2 (ebk) Typeset in Sabon by Apex CoVantage, LLC Contents Acknowledgements ix Foreword xi Introduction Public Markets and Public Services in the EU 1 1 The Public Sector Regulation in the EU Context 8 2 The Contracting Authority as a Concept of Public Sector Regulation 36 3 The Public Contract as a Concept of Public Sector Regulation 50 4 The Origins and Evolution of Public-Private Partnerships as a Global Phenomenon 65 5 The Development of Public-Private Partnerships in the EU 86 6 The Procurement of Public-Private Partnerships 110 7 The Public-Public Partnership 133 8 Regulatory and Legal Trends in Public-Private Partnerships 144 Conclusions 155 Notes 159 Index 203 This page intentionally left blank Acknowledgements It would have been very difficult to complete this project without the involve- ment of a number of people to whom here I record my great indebtedness. First of all, my thanks go to the publishers for their professionalism and the assistance they provided. It is also with deep appreciation that I express my gratitude to H. J. Lamar, Y. J. Lamar, Solomon Holtz, Howard Jacobson, Morris Laxman, Kurt Lip- stein, Gomez Da Silva Texteira, Terrence Bramall, Richard Watson and David Blunt. I also profoundly thank Professor Terry Williams, Professor Alan Rosas, Pro- fessor Walter van Gerven, Professor Alan Dashwood, Professor Takis Tridimas, Professor Harry Arthurs and Professor Surya Subedi. Finally, I am eternally indebted to Dr Christine Bovis-Cnossen for her invalu- able support and inspiration. Christopher Bovis May 2013