Financing urban transport projects in Europe

Transport demand in western Europe has risen steadily in recent years and the forecasts are that the unrestrained demand will continue to rise in the foreseeable future. This growth has put considerable pressure on the resources available to finance infrastructure investments and to fund what are seen as socially important social services. The recent developments in eastern Europe and the anticipated growth of the post-Communist states will put further strains on the fiscal ability of authorities in these countries to fund transport investments and operations. The outcome has been revisions in the way transport projects are funded. This paper, taking a very broad view of what constitutes a transport project, examines the specific nature of urban transport financing in Europe.