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:
“The people of Western Europe are facing this summer a series of tragic dilemmas. Of the hopes that dazzled the last twenty years that some political movement might tend to the betterment of the human lot, little remains above ground but the tattered slogans of the past.”
—John Dos Passos (1896–1970)
“In Europe art has to a large degree taken the place of religion. In America it seems rather to be science.”
—Johan Huizinga (1872–1945)
“When Paris sneezes, Europe catches cold.”
—Prince Metternich (1773–1859)