SOEs account for a large part of assets and employment in developed economies. In Europe, the scope of public ownership in various sectors of the economy is particularly extensive in some of the new Member States such as Romania, but also in some EU15 Member States such as Italy.
While governments’ participation in corporations may be beneficial for Member States’ budgets, it could also lead to direct budgetary costs, in particular when companies are loss making or are run inefficiently. Going forward, increased compliance with reporting obligations would enable a better monitoring of potential risks for public finances. Thus, the objective of this report is to analyze recent developments of SOEs in the EU, to assess past and future challenges and identify best practices with reform efforts.
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