In modern economic business conditions the state is becoming more corporate and a partner of the private sector. The authors in this paper analyzed the public-private partnership (PPP) as a form of public-private sector cooperation, where the partnership and market relationships are established, while achieving mutual interests and protecting public interest. The aim is to investigate the characteristics of PPP in Europe, with a special focus on the transition economies and Serbia, and in particular to highlight the problems in the implementation of PPP projects. The economic crisis that has gripped the financial sector has weakened the ability to borrow in the public and private sectors, has led to a reduction in public funding and has increased the state intervention in the market. This has caused stagnation in the establishment of the PPP. On the other hand, the consequences of the financial crisis, the growing budget deficit, inefficiency in the provision of public sector services are paving the way for new forms of PPP. The methodological approach for this framework research includes using different methods such as comparative method, analytic-synthetic approach (involving the collection of data, set of assumptions, analysis of cases and the execution of deductive conclusions). A combination of methods used by law and economics was necessary, regarding the choice of the topic. The results of these problems indicate that on the level of the EU, there is a tendency to develop PPP projects in some areas of importance for the economic recovery, while in the transition economies and Serbia there is the lack of capital for these projects and lack of appropriate regulatory framework, which is in Serbia largely resolved by adoption of new legislation in this area. The authors have encountered some obstacles and limitations while collecting empirical data, because PPP projects data, especially about the reasons that led to the failure of these projects are not sufficiently transparent. The questions that interested the authors have practical implications, since successfully implemented PPP projects contribute to economic recovery and better overall picture of a country. Without prejudice to the classic forms of PPP, using the freedom of scientific research, the authors suggested some new forms of PPP in Serbia that will not fit into the classical form, that is PPP in health sector and in education, and PPP is achieved through the issuance of municipal bonds.
