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Is the EU Funding White Elephants in Transport?

Phedon A. Nicolaides

Public funding of transport infrastructure needs to be spent in a better way. For some projects, more private investment should have been mobilised instead of entirely committing public money to bridge the funding gap. Examining four Commission Decisions on funding of port infrastructure, this article will explore the assessment practice of the European Commission and demonstrate shortcomings of a proper financial analysis. Furthermore, it will be shown that the cost-benefit methodology borrowed from regional policy is not sufficient for State aid purposes as it does not indicate the proportionality of public funding.


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