Published Thursday, February 21, 2008 at 12:40
by
jonworth
(1301 views and 3 comments)
Free trade between Member States is one of the principles on which the European Union is founded. I profit from this personally, being able to sell website services in the UK, Belgium, Germany and Sweden. It's good that a company from Ynys-ddu can sell its widgets in Ystad without hindrance.
Europe-wide markets have helped many large firms to develop - plenty of us make calls with our Vodafone mobiles, fly Easyjet and drink beers brewed by Inbev. Regulatory frameworks established by the EU help these firms to develop.
Yet what about services traditionally provided by the state such as refuse collection, water and energy services? Street sweeping in Camden, London, the underground in Stockholm, trains in northern Netherlands, buses in Pontypridd and sewage works in Budapest are all operated by Veolia - a logo that's appearing all over Europe. SUEZ is active in many countries in similar sectors - water, waste, recycling and energy netowkrs too. E.ON runs energy generation and networks in Germany, its country of origin, and from the UK to Moldova and from Sweden to Italy.
What about the state run equivalents? I would be happy to see French state rail operator SNCF run commuter trains in London, but I don't forsee that happening. Why is Wien Energie not set for expansion? How about STIB/MIVB operating Metro trains in cities other than Brussels? The experience of Svenska Spel and the UK government's travails about Northern Rock are reasons to be cautious however.
In short my point is this: if we are OK with huge private sector conglomerates running our services all over Europe, surely we must find a role for state run enterprise across Europe too? Protectionism - trying to shield a treasured national institution in the face of competition - is no good as competition will knaw at that operator eventually.
Comments
1. European state-run enterprises: what about regulation of public utilities by amandinecrespy
on Friday, February 22, 2008 at 16:23
Hi Jon, I don't really understand you point. The French electricity historical (once state-owned) operator EDF does already have a very good position on EU and world marketsf or instance. I think your comment is closely related to the issue of the regulation of public services in the EU. The problem is: the Commission seems to want to eradicate state-run enterprises. In my view, a good start would be to evaluate the results of liberalisation and privatisation of some key-sectors of public utilities in order to see whether this is is satisafying with respect to citizen needs. And we could think about the best way to accomodate decent public services through state-run enterprises and competition rules of the common market. If this demand is not put forward by the PES, they will never be a meaningful role for state-own firms in the EU.
Salut Jon, peux-tu clarifier ton point de vue? L'opérateur historique d'electricité français, EDF (qui était public, en voie de privatisation) a une très bonne position sur les marchés européens et mondiaux. Je pense que ton commentaire est liée à al question de la régulation européenne des services publics. Le problème est que la Commission et les gouvernements libéraux veulent éradiquer les monopoles d'Etat. Je pense qu'un bon point de départ serait de faire le bilan de la libéralisation et de la privatisation de nombreux secteurs de services publics et de voir si le résultat est satisfaisant au regard des besoins des citoyens. Et ensuite on pourrait réfléchir à la meilleure manière de de concilier services publics décents et règles de concurrence du marché commune. Si cette demande n'est pas portée par le PSE, il n'y aura jamais de rôle pour les firmes publiques en Europe.
2. I think you've clarified it perfectly... by jonworth
on Friday, February 22, 2008 at 17:13
I agree with your summary... EDF is one of the few state run firms to have managed, but it's been in a position to be able to do so by producing so much nuclear-generated electricity so as to be able to export that to Germany and Italy that have shortages of generating capacity. Generally speaking the EDF experience is an exception though.3. I think it's still a bit murky...! by carl0s
on Friday, February 22, 2008 at 20:50
Please don't misunderstand this, but it's certainly telling that EDF was used as an example in this case. Basically, I think Jon has hit the nail on the head and revealed an interesting issue.
The fact is that the French government has a number of different techniques and funding strategies for boosting French "companies." These companies may not be regarded as state-owned, but the state is so intertwined that they are certainly not private enterprises
From Renault/Peugot, EDF, to Orange, the recurring pattern is of a corporate parentage that leads directly to the French state.
Is this the right way to do things? Maybe. Does it contradict the EU's free market regulations? Almost certainly. Will the EU do anything? Probably not.
So why not let other countries do this? What's actually wrong with companies attracting state investment for R & D? These companies should be made accountable to their stakeholders and taxpayers.
What is wrong, is that smaller countries who are "playing by the rules" - such as the Accession 10 - are penalised. Here we see realpolitik at work - and with an EU of limited democratic means, it seems to be how most business is conducted.
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