MUNICIPAL GUARANTEES – PUBLIC SUPPORT FOR WHICH INVESTMENTS?
MUNICIPAL GUARANTEES – PUBLIC SUPPORT FOR WHICH INVESTMENTS?

Summary/Abstract: The current regulations concerning the issuance of municipal guarantees are both unclear and limitative, therefore restricting their use by the local public authorities as an effective support measure for public investments of local interest. Whilst focusing on procedural issues and on the financial limits to the ability of local authorities to undertake public debt obligations, the law seems to define in a restrictive manner the potential beneficiaries of municipal guarantees, that excludes the concessionaires of public works, public assets or public services, the delegated administrators of utilities an the project companies operating a public-private partnership project. A redrafting of such texts to extend the list of beneficiaries of municipal guarantees to such companies would give local public authorities a significant instrument for supporting investment projects.

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