Yet Germany is now an example of how big the dividends of reform can be if structural adjustment is made a strategic priority and implemented with sufficient patience. The effect of the crisis on the different euro area economies follows a similar pattern to those of comparable US states.
First, given the long run nature of the assets employed by public utilities, long run considerations are important in franchise bidding. Writing contracts that ensure reasonable performance over the contract life would be very costly. Second, since it is not possible to incorporate every single detail explicitly in a contract, renegotiation over time is necessary.