This document discusses public investments in Denmark and other European countries. It provides data showing that Denmark's public investments as a percentage of GDP have historically been lower than the EU15 average but have increased in recent years. The document also shows increasing public investments in Denmark from 2012 to 2020 for projects like railroads, public housing, and energy agreements. Finally, it outlines some lessons learned, including questions around whether countries have an infrastructure gap, if projects are profitable, how projects can be financed, and if infrastructure investments can support economic growth.

1. Senior Advisor Henrik THOMASEN
henth@fm.dk
Public Investments -
Some Danish Experiences
23 March 2015

2. PUBLIC INVESTMENTS IN SELECTED COUNTRIES, 2013
2
0
1
2
3
4
0
1
2
3
4
SWE
NLD
FRA
NOR
FIN
DK
UK
IRL
ITA
BEL
DEU
AUT
Per cent of GDP Per cent of GDP

3. PUBLIC INVESTMENTS IN DENMARK AND EU15
3
0
1
2
3
0
1
2
3
95 97 99 01 03 05 07 09 11 13 15
EU15 Denmark
Per cent of GDP Per cent of GDP

4. PUBLIC AND POLITICALLY DRIVEN INVESTMENTS
4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
0
1
2
3
4
5
6
7
8
9
10
11
12
13
12 13 14 15 16 17 18 19 20
Public investments Railroads, metro og Femern tunnel Public housing Agreement on energy
Bn. euros, 2015 prices Bn. euros, 2015 prices

5. SOME LESSONS TO BE LEARNED
• Frontloading Risk: Permanently higher level of public
investments
• Is there an infrastructure gap?
 What is included in the statistics in various countries?
 Are the projects profitable? See OECD’s CBA Survey (forthcoming)
 Can the projects be financed? Increasing public deficit, fiscal risks
• Can infrastructure investments support growth?
 Possible effects in the construction phase
 Potential GDP - in growth areas!
5