Financing infrastructure in central and eastern Europe

Since the fall of the Berlin Wall in 1989, central and eastern European countries have sought to adapt to a market economy and bring their industries closer to western European levels. Establishing modern infrastructure is an inevitable part of the process and the need to find suitable financing, particularly for transport, has offered a considerable challenge. This paper outlines the role of the major European lending institutions in financing—including the European Investment Bank and the European Bank of Reconstruction and Development. It also reviews the efforts made to introduce public-private financing in central and eastern Europe and looks at the cost of Hungary's abortive attempt to introduce public–private financing for transport infrastructure.