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Keywords

Public services, Public transport, In-house contract, Economic activity within Teckal regime, Financing public services, Economic merits of PSO granting

Abstract

The financial crisis makes it necessary to put forth certain procedures focused on increasing the efficiency of public assets, especially where communal entities are at stake. Every commune is required to introduce the best available public services, what requires increased spending. Simultaneously, public authorities are facing certain budgetary restraints and, as a result, companies owned by public authorities that are entrusted with public service obligations (PSO) must think of ways to minimize the necessary compensation. One of the most popular vehicles for reaching this strategic goal is the expansion of non-PSO (commercial) activities. That may give positive financial results for both the communal company as well as the public authority. Nevertheless, a company that is a beneficiary of an in-house order is facing restrictions on non-PSO activity. This article puts a spot light on the issue of finding the balance between meeting strategic financial objectives staying in-line with legal framework at the same time.

First Page

96

Last Page

109

Page Count

13

Publisher

University of Warsaw

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