Public-private partnerships (PPPs) have long been a vital tool for financing and implementing infrastructure projects in France, spanning transportation networks, public facilities, and energy infrastructures. However, the current political landscape, marked by increasing polarization and the rise of extremist movements, is calling this model of cooperation between the state and the private sector into question. As new political directions struggle to take root, policymakers must rethink the viability and implications of PPPs in this uncertain environment.
Political polarization weakens PPPs
The rise of extremes on both the left and the right is reshaping the debate around public-private partnerships. On one side, Jean-Luc Mélenchon’s Nouveau Front Populaire advocates for stronger state intervention in the economy and criticizes the concessions made to the private sector through PPPs. On the other, the Rassemblement National, led by Marine Le Pen and Jordan Bardella, emphasizes national sovereignty and expresses distrust of foreign influence in infrastructure projects, potentially slowing or even blocking certain partnerships with multinational corporations.
Recent projects, such as the extension of the Grand Paris Express transport network, illustrate these tensions. While this Parisian initiative heavily relies on partnerships between public and private actors, emerging criticisms regarding costs and risk management highlight current ideological divides. Victoire Duhem, Practice Director at NAOS International, notes: “Decision-makers are in a delicate position where PPPs, once seen as an innovative and efficient financing model, are now at the heart of political debates, making their implementation increasingly complex.”
Regulatory and legal uncertainty : A barrier to Investment
Political uncertainty also fosters a climate of mistrust among private investors. Some government reforms, combined with parliamentary tensions and the unexpected dissolution of the National Assembly in June, have led to abrupt regulatory changes affecting PPPs. Investors seeking stability may hesitate to commit to large-scale projects if the rules are likely to change midstream.
Local development at the forefront
Local authorities are now grappling with the consequences of public sector inertia, which slows or halts numerous large-scale urban development projects. These initiatives, crucial for local growth and territorial revitalization, can be blocked by administrative delays, decision-making setbacks, or political divergences.
A 2021 report by the Cour des Comptes highlighted administrative slowdowns in handling urban development projects, stating that “the decision-making delays in public services and conflicts of interest within local authorities are major obstacles to urban development.”
As a result, key initiatives such as downtown revitalization or the development of new residential and commercial areas stagnate, leaving local governments with frozen investments, uncreated jobs, and mounting frustration among residents. This situation underscores the need for better coordination and greater efficiency in public action to support local dynamism.
Renewable energy projects in focus
France has announced ambitious energy transition goals, necessitating massive investments in green infrastructure. These goals have culminated in the creation of the National Integrated Energy-Climate Plan (PNEC). According to this plan, France aims to achieve carbon neutrality by 2050, requiring annual investments of €60-70 billion in green infrastructure and energy transition technologies by 2030.
However, recent political fluctuations and reversals on certain environmental decisions have raised doubts among private partners. A study by the Fédération Française du Bâtiment (FFB) shows that 45% of companies in the sector see regulatory instability as the main obstacle to participating in PPPs.
“Investors are now more cautious, demanding additional guarantees and stricter contractual conditions, which can slow project progress and increase overall costs,” emphasizes Victoire Duhem. This puts public authorities in a difficult position, as they must balance the need for political flexibility with maintaining an environment attractive to investors.
The resurgence of state interventionism: A return to prominence
State interventionism, advocated by some political parties, is gaining traction in public debate. This resurgence of state control could translate into direct management of certain infrastructure projects, relegating PPPs to the background. Some political leaders favor a model where the state regains control over strategic sectors, potentially discouraging private companies from participating due to fears of increased intervention or nationalization.
Take the case of telecommunications infrastructure, particularly the rollout of 5G. Although this project requires significant private investment, some political factions envision a predominant state role in network management, arguing that these infrastructures are of national interest and should not rely on the private sector.
The Huawei example in 5G deployment
Discussions around companies like Huawei in Europe’s 5G deployment illustrate these concerns. While France has not banned Huawei outright, it imposed significant restrictions in 2020, reflecting distrust and the belief that the state should play a more active role in controlling such infrastructures. This skepticism is echoed and amplified by the sovereignty-focused rhetoric of parties like the Rassemblement National.
Although still a minority view, this perspective is beginning to influence decisions, slowing existing partnerships and complicating new initiatives.
“The idea of renewed state control is appealing to a segment of the electorate, but it risks hindering the innovations and investments needed to modernize the country’s infrastructure,” warns Victoire Duhem. “Companies must navigate an environment where political uncertainty can suddenly turn a partnership into an ideological and legal battleground.”
In this tense political context, public-private partnerships in France face new challenges that call their effectiveness and relevance into question. Political polarization, regulatory uncertainty, and the resurgence of state interventionism complicate the task of decision-makers in human resources and business affairs. They must now factor in these new variables to successfully deliver infrastructure projects critical to the country’s development.
As France strives to modernize its infrastructure while adhering to budgetary constraints, PPPs remain a viable option but require a more nuanced approach adapted to today’s political realities. Sector actors must prepare for an environment where public-private cooperation is more scrutinized than ever, and where every decision can have significant repercussions on the feasibility and sustainability of projects.