Europe
In Western Europe there was a massive nationalization throughout the 20th century, especially after World War II to ensure Government control over natural monopolies and to some extent industry. Typical sectors included telecommunications, power, petroleum, railways, airports, airlines, public transport, health care, postal services and sometimes banks. Many large industrial corporations were also nationalized or created as Government corporations, including among many British Steel, Statoil and Irish Sugar. Starting in the late 1970s and accelerating through the 1980s and 1990s many of these corporations were privatized, though many still remain wholly or partially owned by the respective governments.
A state-run enterprise needs to be distinguished from an ordinary limited liability corporation owned by the state. For example, in Finland, state-run enterprises (liikelaitos) are governed by a separate act. Even though responsible for their own finances, they cannot be declared bankrupt; the state answers for the liabilities. Stocks of the corporation are not sold and loans have to be government-approved, as they are government liabilities. In contrast, the state also owns controlling interest in ordinary limited liability corporations. A state-run enterprise is technically not always a corporation, it might also be a separate state entity, or simply a governmental agency acting as an enterprise, perhaps having its own budget. Conversely, the state can directly fund unprofitable business, such as railway services to remote areas, regardless of whether the operator is a private corporation.
Read more about this topic: Government-owned Companies
Famous quotes containing the word europe:
“Never before since Jamestown and Plymouth Rock has our American civilization been in such danger as now.... [The Nazis] have made it clear that not only do they intend to dominate all life and thought in their own country, but also to enslave the whole of Europe, and then to use the resources of Europe to dominate the rest of the world.”
—Franklin D. Roosevelt (1882–1945)
“Should the German people lay down their arms, the Soviets ... would occupy all eastern and south-eastern Europe together with the greater part of the Reich. Over all this territory, which with the Soviet Union included, would be of enormous extent, an iron curtain would at once descend.”
—Joseph Goebbels (1897–1945)
“I’ve come to think of Europe as a hardcover book, America as the paperback version.”
—Don Delillo (b. 1926)