| Public Services International Research Unit |
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Resource 6
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From PSPRU: Public Enterprise in Europe (Feb 1998) The table below sets out a range of types of public enterprise. Some are owned by the state - usually nationalised industries in services like telecoms or energy; some are owned by local authorities, or associations of authorities - usually providers of local services like waste management, water or district heating. There are many variations in the precise legal status, but the key difference lies in whether they operate
It is generally true that public enterprises in all European countries, whether state or municipally-owned, have been moving away from the first status - of internal division within an authority - to the second status, of independent company, even though still 100% owned by the authority. It is also becoming less common for public enterprises to have special legal status under 'public law' as opposed to 'private law'. Public authorities are still making these changes in status, for example:
The change of status from administrative department to independent company is not the same as privatisation, although it makes subsequent privatisation more possible. Enterprises may be wholly owned or partly owned by a public authority, and the other shareholders may be investors or a corporate partner, usually a multinational. The table mentions some examples. The proportion owned by the public sector may vary (up or down), while the company remains within this broad range of enterprises which are wholly or partly publicly-owned. At the end are companies which are wholly-owned by the private sector, and so are not public enterprises, but whose core business is providing the services typical of public utilities. It is possible for public authorities to buy back shares in these companies, and so they can be considered as an extreme end of a continuum. Public enterprises in Europe : range of types (with examples)
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