Financing of regional passenger transport

In a market economy, the state does not make direct decisions in either the sphere of production or consumption. The transformation of the Polish economy in the 1990s assumed the liberalization and deregulation of various areas of life, including transport. Against this background, controversies arise regarding specific detailed solutions, mainly in the scope of regulating access to the transport services market or the support provided by the state or local governments for certain segments of transport activity.Analyzing the current business cycle, it was forecasted that an economic slowdown would occur in the years 2008-2010, which was to be a natural consequence of the economic growth lasting until 2007.
Most forecasts, however, proved too optimistic, as they did not take into account the possibility of a global financial crisis.
The mortgage market crisis that began in mid-2007 in the United States, combined with the economic slowdown felt by the American economy, triggered a financial crisis that affected most countries in the world. The economy of the United States is strongly linked to the global economy, including the European Union, which is why all countries felt the effects of the economic slowdown in the USA to a greater or lesser extent.
In times of crisis, the market situation is shaken, and companies accustomed to the previously prevailing good economic conditions must adapt their operations to new conditions. Sources of financing for regional passenger transport
In a market economy, the main function of the state, represented by the parliament, the government, and its agencies (ministries, offices, etc.), is limited to legal and economic regulation aimed at protecting public interests against the negative consequences of the market mechanism, and in particular the conduct of producers and sellers holding a monopoly position.
The state creates various types of legal and institutional barriers that limit the negative consequences of market functioning and create a social safety net for the poorest. The introduced solutions should enable the resolution of potential market conflicts on the basis of compromise or social contract. At the same time, they should contribute to the development of the country under conditions of a low inflation rate and the lowest possible unemployment. Through the introduction of legal regulations, changes in the tax system, or the undertaking of other regulatory measures, the state strives to improve economic processes. (…)

Financing of regional passenger transport – PDF file for download