LOCAL PUBLIC COMPANIES IN THE 15 MEMBERS EU AUSTRIA BELGIUM DENMARK FINLAND FRANCE GERMANY GREECE IRELAND ITALY NETHERLANDS PORTUGAL SPAIN SWEDEN UNITED CZECH ESTONIA HUNGARY LATVIA LITHUANIA SLOVAKIA SLOVENIA THE 10 NEW MEMBERS EU THE 25 OF THE EUROPEAN UNION BEFORE 05.2004 (A) (B) (DK) ( FIN ) (F) (D) (GR) ( IRL ) (I) (NL) (P) (E) (S) KINGDOM (UK) REPUBLIC (CZ) ( EST ) (H) (LV) (LT) (P) (SK) (SLO) 8.1 million inhabitants 10.3 million inhabitants 5.3 million inhabitants 5.2 million inhabitants 59.5 million inhabitants 82.2 million inhabitants 10.6 million inhabitants 3.8 million inhabitants 57.8 million inhabitants 16.0 million inhabitants 10.0 million inhabitants 39.5 million inhabitants 8.9 million inhabitants 58.9 million inhabitants 10.3 million inhabitants 1.4 million inhabitants 10.0 million inhabitants 2.4 million inhabitants 3.7 million inhabitants 38.6 million inhabitants 5.4 million inhabitants 2.0 million inhabitants Capital : Madrid : Wien Capital city: Brussels Capital city: Copenhagen Capital city: Helsinki Capital city: Paris Capital city: Berlin Capital city: Athens Capital city: Dublin Capital city: Rome Capital city: Amsterdam Capital city: Lisbon Capital city: Stockholm Capital city: London Capital city: Prague Capital city: Tallin Capital city: Budapest Capital city: Riga Capital city: Vilnius Capital city: Capital city: Bratislava Capital city: Ljubljana Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralisaed organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: NLY Decentralised organisation: 589 (communes) Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: Decentralised organisation: 8,106 municipalities (municipios) Decentralised organisation: 34 councils, 2 regional 6,258 municipalities () 247 municipalities ( - linnad - 3,158 municipalities (község 547 municipalities (novads expec- 61 municipalities (savivaldybe) 2,489 municipalities () 2,920 municipalities (obec) among 193 municipalities (obcina) O 36,565 municipalities (communes) 13,854 municipalities (Gemeinden) 8,101 municipalities (comuni) 4,037 parishes (freguesias) 50 (provincias) KOMMUNALE UNTERNEHMEN IN DEN 25 2,359 municipalities (Gemeinden) 10 provinces (provinces) 275 municipalities (kommuners) 448 municipalities (kunta) 96 departments (départements) 323 (Kreise) 133 rural communities (koinotita) 5 city councils and 80 504 municipalities (gemeente) 278 municipalities (municipalités) 290 municipalities (Kommun) assemblies, 1 regional parliament 14 (kraje) and rural municipalities - vallad) and város) ted to merge into 100 in 2004) satellites: 373 (powiat) which 39 city districts Local government satellites: ONLY CYPRUS LUXEMBOURG LOCAL PUBLIC Local government satellites: 14 counties (amstskommuners) 900 municipalities (dimi) authorities 103 provinces (provinces) 12 provinces (provincie) 17 autonomous communities 20 counties (Landstigs) 36 metropolitain districts councils, LOCAL PUBLIC Local government satellites: Local government satellites: 22 regions (régions) Local government satellites: Local government satellites: Local government satellites: Local government satellites: 19 counties (megye) 26 counties public institutions 16 regions (województwa) 8 regions (Vyssie uzemmne celky) inter-municipal structures (regipe) & MALTA 589 public social welfare centers 50 departments (nomi) 29 county councils 20 regions (regioni) (comunidades autonomas) 238 rural councils, DOES NOT HAVE COMPANIES = municipal internal bodies (Regiebe- Local government satellites: 250 inter-municipal structures and Local government satellites: municipal internal bodies (Regiebe- Local government satellites: 2 metropolitan areas (area metro- Local government satellites: inter-municipal structures inter-municipal structures Local government satellites: Local government satellites: 3,325 budgetary organisations Local government satellites: Local government satellites: public communal institutions COMPANIES = (centres publics d'aide sociale) Local government satellites: Local government satellites: 33 , 26 districts, DON'THAVE MITGLIEDSSTAATEN DER EUROPÄISCHEN UNION trieben, Eigenbetrieben) inter-municipal structures 19 inter-municipal regional 19,000 inter-municipal structures Local government satellites: 8 regional authorities inter-municipal structures politana) 1,047 inter-municipal structures 120 foundations 12,167 contributory organisations budgetary organisations budgetary organisations local government agencies 108 municipal enterprises inter-municipal structures 826 contributory organisations municipal internal bodies LOCAL PUBLIC LPCS 125 polders and wateringues trieb, Eigenbetrieb) 100 unitary authorities LPCS inter-municipal structures (Gemein- 224 local public companies structures (among which 2,360 with own tax inter-municipal structures Local government satellites: 2,000 inter-municipal structures water boards (Waterschappen) 44 municipal internal bodies (ser- (among which mancomunidades) 44 partnerships (příspěvkové organizace) (valla- või linnavalitsuse hallatav (önkormányzati intézmények) (pašvaldības aentūra) local public companies 6,948 budgetary organisations (príspevkové organizácie) 60 local public companies LPCS 3,378 church councils (fabriques inter-municipal structures (among Local government satellites: COMPANIES revenue) 314 aziende speciali e consortili vizços municipalizados) organismos autonomos administra- deverbände) d'églises) (offentige-private selskaber) 648 municipal internal bodies which Zweckverbände) 1,116 local public companies joint committees local public companies 13 cooperative associations joint authorities budgetary organisations asutus) local public companies local public institutions (iestāde) (komunalny zakład budżetowy) 559 budgetary organisations 149 local public companies 944 local public companies 1,198 local public companies (Sem) local public companies local public companies 296 gestioni in economia 76 local public companies tivos and comerciales 1,750 local public companies 339 local public companies foundations (sihtasutus – SA) 669 local public companies 2,415 local public companies (rozpočtové organizácie) 243 local public companies 114 enti autonomi e pubblici 770 local public companies 185 local public companies (Eigengesellschaft, Beteiligungsgesellschaft) (empresas municipais e intermunicipais) (among which 1,669 Kommunala bolag) (regulated and non-regulated companies) 224 local public companies 239 local public companies (intercommunales) 649 local public companies (sociedades mercantiles)

1,450 LPCs and similar 243 LPCs (intercommunales) 224 LPCs 944 LPCs 1,198 LPCs (Sem) 3,500 LPCs and similar 1,116 LPCs 963 LPCs and similar (consorzi, 76 LPCs (empresas municipais e 770 LPCs (sociedades mercantiles) 1,750 LPCs 185 LPCs (regulated and 224 LPCs 669 LPCs 2,415 LPCs 239 LPCs 60 LPCs 11,600 identified 339 LPCs LPC (kommunale Unternehmen), Results: 1.9 billion € (offentige-private selskaber) Turnover: 2.1 billion € Turnover: 13.3 billion € (kommunale Unternehmen) Turnover: 447.6 million € SpA, SrL) among wich 649 LPCs intermunicipais) Turnover: 16 billion € non-regulated companies) Turnover: 150 million € Turnover: 718 million € Turnover*: 5.2 billion € 4,000 identified LPCs and similar LPCs LPC KEY € among which 149 LPCs Staff: 27,250 employees Staff: 66,426 employees Turnover: 82 billion € Staff: 27,500 employees (S.p.A., S.r.l.) Staff: 55,000 employees Staff: 10,900 employees Staff: 53,142 employees Staff*: 160,402 employees AND SIMILAR 130 billion na na na na 6 billion € turnover Staff: 44,000 employees Staff: 530,000 employees Turnover: 16.7 billion € FIGURES turnover (*LPCs with more than 9 employees) 225,000 employees KEY FIGURES 900,000 employees Staff: 152,662 employes

First creations of local government First creations at the end of the First creations in 1980 First creations at the end of the First creations in 1920 First transformation of local govern- First creations in 1857, confirmed by First creation of local government LPCs existing since 10 years First creations in 1900 First creations in 1870 At the beginning of the 1990's, From 1990 on, municipal enterpri- Between 1989 and 1991, transfer Early 1990s, creation of local From 1995 on, creation of In 1990, creation of municipal entre- Since the 1991 Municipal Since 1993, transfer of State – early 1990's: related entities in 1900, transformed XIXth century, recognised by the XIXth century in the energy sector Increasing number in the 1980's, ment related entities into companies the 1954 Act related entities in 1905-1910, then Increasing number from 1980's on transfer of State-owned ses created by the transfer of State of State-owned enterprises to muni- government enterprises as a conse- municipal enterprises as a prises (przedsiębiorstwo komunalne) ownership Act, transfer of local ownership to municipalities and municipal 1921 Constitution organisations to the municipalities ownership to local governments cipalities and transformation of the quence of State ownership transfer consequence of transfer of State as a consequence of the State enterprises to municipalities transformation of the local into companies under commercial due to the decentralisation process under commercial law in the 1870's Increasing number in the 1990's transformed into companies from enterprise creation MILESTONES law or created ex nihilo from 1960 Since the 1993 federalisation, 1990 on In 2001, transfer of State-owned Since 1996, transformation of the socialist municipal enterprises (Vál- Since 2001, creation of companies ownership to local authorities ownership transfer After the transfer wave, own local entreprises "of special social with the transfer of The first LPCs were on Regions responsible for the inter- organisations to the regions municipal enterprises into compa- lalat) into companies under under commercial law From 2000 on, transformation From 1996 on, transformation of government choice to transform importance" into LPCs State ownership to SINCE created in the communales’ organisation na na na created in 2000 nies under commercial law commercial law of municipal enterprises into municipal enterprises into companies budgetary organisations into LPCs municipalities FIN MILESTONES XIXth century By the end of 2003, end of the local THE TRANSITION In 2003, new transfer to the In 2001, hospitals transformed into government enterprise statute, to be companies under commercial law (jednoosobowa spółka gminy) coming – middle of 1990's: municipalities and the regions municipal companies under transformed into any structure freely under the Company Law transformation into PERIOD commercial law chosen by local governments companies under commercial law

Increasing transformation of munici- Electricity and gas Intercommunales LPCs sector reorganisation, notably LPCs mainly active in public services Sector currently undergoing a reform Increasing number of LPCs, due to Stability Stability In the ownership transfer of a First a rapid increase, followed by Decreasing number of LPCs, Decreasing number of LPCs, due to Decreasing number in the following Increasing number to the detriment Increasing number due to Stable number of LPCs EST A reorganisation of Stability as a whole, but reorganisa- pal internal bodies into LPCs under reorganisation, in the energy liberali- concerning: provision process art. 35 of the 2002 Act, setting up number of State-owned entities to decreasing LPCs (by half), due to the due to the privatisation process local government merger sectors, due to the privatisation of municipal budgetary transformation of budgetary S the LPC landscape tions in housing and planning commercial law sation process : capital and activi- –their capital structure, with private the reorganisation of the local public municipalities and regions, the privatisation process process, to the regulators’ process: health, local road, public organisations within the public organisations linked to the in some countries, Increasing number in the public Emerging LPCs in the sectors of par- Increasing number ties restructuring, due to demerger acquisitions in a context of financial services and transformation of contributory organisations were authorities supervision for some lighting, housing, pharmacies services modernisation decentralisation process LV LPC MAIN particularly due to services activities (health, tourism, king spaces, environment, and inter- before a LPC MAIN between the distribution network na na difficulties for local governments aziende speciali into LPCs na na na most concerned services and to the privatisation DK the liberalisation of telecommunications) –a reorganisation process between net services in rural areas LPCs rather in large rationalisation IRL TRENDS management activities and the context TRENDS certain services and the networks companies (merging, Trend to stabilisation and process energy supply - implementation LT the local economic interest acquisitions) in the electricity rationalisation of the LPCs number schedule varying from the Regions context and gas sectors, as a consequence UK of European regulations Electricity, gas, heating, public Electricity, gas, communication net- Economic development, electricity, Economic development, energy, Tourism, planning, housing, public Energy, economic development, Water, sewerage, culture, tourism, Economic development, Regions: economic development, plan- Economic development, energy, Energy, public transport, tourism, Municipalities and provinces: public Energy, water, waste, public Economic development, tourism, Public transport, electricity, gas, Electricity, gas, water, housing, Public cleaning, housing, health, Health, heating, waste, real estate Health, housing, pharmacies, Water, construction, waste, real Waste, water, sewerage, heating, Water, waste, road, cemeteries, Main sectors of ECTORS SECTORS transport, water, sewerage, waste, works, funding, economic develop- gas, heating, water, waste, public water, sewerage, waste, public transport, economic development, water, waste, public transport, training, careers environment, planning, public ning, public equipment, public transport waste, public transport, culture, environment, planning, commercial transport, water, real estate, transport, housing, tourism, public equipment, health, heating, water, waste public transport, heating, health, sewerage, water, environment, operations, sport, public transport, market places, public baths, public estate operations, electricity, gas, public spaces, health, public public transport, public spaces, activity: electricity, S NL About 10 different PL OF ACTIVITIES telecommunications, public equipe- ment, water, waste, health, social transport, leisure, computing, transport, ports, telecommunications water, sewerage, waste, public equipment, housing, banks, transport, water, sewerage, leisure, Provinces: commercial events, tourism roads, parking spaces, fire fighting and industrial infrastructures, health, planning, economic development, economic development social care social services, trade, waste parking spaces pharmacies, water, social care, transport, sport, tourism, heating, heating, public transport, trade, transport, public lighting, sport, electricity, heating heating, water, OF ACTIVITIES sectors of activity B D (IN DECREASING ment, cemeteries, public areas, care housing environment, leisure, culture, telecommunications agriculture, education, health Municipalities: energy, water, waste, education, food industry cemeteries radio & tv, auditing, training, water, waste, local road, public leisure, culture, sport housing, cemeteries, local television, health, public (IN DECREASING L ORDER) health telecommunications, parking spaces pharmacies, cemeteries tourism, electricity lighting tourism transport ORDER) CZ Local Government Acts adopted by Brussels intercommunales and interre- Unwritten local government laws 1976 Local Government Act, 07.07.1983 Act on local Sem, Local Government Acts adopted by 1065/1980 Act on profit-making 1991 Local government Act Art. 113 of Law-Decree 267/2000 Company Act limited art. 234 of 18.08.1998 Act on Municipal, 7/1985 Act on the Local Govern- Company Act 1975 Company Act 1985 1991 Transfer of State Ownership to 1989 Local Government 1988 Company Act 1990 Entrepreneurial Activity Act 1994 Transfer of Part of the State 1990 Local Government Act 1990 Act 1993 Local self-government Act each Land gional ones: 22.12.1986 Act, Orders for municipal activities modified in 1995 modified by the 02.01.2002 Act each Land based on the 1935 companies setting up by municipal Company Act on Networks and Local Public Service municipal code Intermunicipal and Regional ment Organisation Local Government Act 1991 Local Government & Housing Act Municipalities Act Foundation Act 1989 Transformation into 1991 Local government Property to the Municipalities 1996 Municipal Economy Act 1991 Communal Property Act 1993 Economic Public Service Act 19.07.2001 on Brussels LPCs Supervi- Company Act 384/1992 Act for Activities based 1978 Company Act, modified in 1997 (CGCT art. L 1521-1 et s.) Deutsche Gemeindeordnung level Provision Management Companies 39/1988 Act on Local Finance Public Procurement Act 1994 1989 for Wales and England 1991 Commercial code 1993 Local Government Company Act Enterprise Act Ownership Act 1998 Regions and Counties Act 1995 Budgetary Rules Act 1993 Company Act F SK sion and 17.07.2001 on Electricity A combination of on Municipality Know-how 24.07.1966 Limited Company Act, Budgetary laws for the City-Länder 1069/1980 Act governing water Art. 35 of 2002 Finance Act Company Act 1564/1989 Law-Decree modifying Local Authorities Companies Order 2000 Act Organisation Act 1990 Local Government Act 1991 Limited Liability Company Act 1995 State and Municipal 2000 Commercial Code 1991 Business Code A different laws, in Flemish Region: 22.12.1986 Act, 383/1992 Act for economic specified by Act 1983 Berlin, Hamburg, Bremen LPCs (448/2001) on Local Public Service the Limited Company Act 1995 (LACO) for Wales and England 1996 Commercial Code 1993 Limited Company Act Enterprise Act Decrees 01.07.1987 on Supervision, 2000 Transfer of Ownership to the 1995 Public Procurement Act relation to Company Development Activities Company Act 1984 Act on municipality sharehol- Provision Management 1995 Privatisation of State-owned H 06.07.2001 on intercommunale 2/1995 Act on Limited Liability Regions Act 2001 Health Services Act 2003 Hospital Act 1994 Local Government Act Combination of the MAIN ding in limited companies Company act MAIN SLO Act and Local Cooperation, 18.07.2000 on Electrici- Company Act Company 2000 Municipality Act 1996 Transformation of State and and municipal Property Act Company Act and Government APPLICABLE ty and 06.07.2001 on Gas 1994 Act on LPC creation by Art. 14 of Act 326/2003 on Local 2000 Budgetary Rules of territorial Local Government Enterprises into 1996 Public Institution Act local government APPLICABLE Regulations, LAWS Walloon region: Decrees 5.12.1996 departments Public Service Provision Management Budgets Act Limited Companies Act 1996 Health Care Institution Act regulations LAWS I sometimes and adjudication – This article does not (modified in 1999 and 2002), Rural community and Municipality 2001 Financial Control in public 2001 Commercial Act 2000 Company Act P completed by apply to gas and electricity sectors, 20.07.1989 on Supervision, code Administration Act 2002 State and Local Government specific laws 07.03.2001 on Public Information, that are regulated by sectoral rules E Company rules 2002 Transfer of Ownership to the Capital Shares and Company Act 12.04.2001 on Electricity, and Art. 4 co.234 of 2004 Finance Act Regions, municipality Act 2002 Regulators of public 19.12.2002 on Gas (350/2003) Company Act Service Act Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal form: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: Legal forms: – limited companies (Aktiengesells- – limited companies (sociétés anony- – limited companies (aktieselskaber – limited companies (julkinen – limited companies (sociétés anony- – limited companies (Aktiengesells- –limited companies companies under commercial law – limited companies (società – limited companies (Namloze Ven- –limited companies –limited companies (sociedad – limited companies (Aktiebolag) – companies limited by shares – 18 limited companies (akciová –limited companies (aktsiaselts - –limited companies – 365 local government enterprises – municipal enterprises – 358 limited companies (spółka – 22 limited companies (a.s.) –limited companies (javna delniška GR chaft - AG) mes - SA) - A/S) osakeyhtö - Oyj) mes - SA) chaft - AG) – cooperative companies Internal organisation: per azioni – SpA) nootschap - NV) – limited liability companies anonyma) Internal organisation: – companies limited by guarantee společnost, a.s.) AS) (Részvénytársaság) (pašvaldības uz ēmums) –limited companies akcyjna - SA) – 217 limited liability companies družba) – non-profit making associations (asso- – limited liability companies – 37 limited companies (akciju LPCs are mainly – limited liability companies (Gesells- – limited liability companies Internal organisation: – limited liability companies Depending on their capital structure, executive and supervisory boards – limited liability companies (società – limited liability companies (Beslo- Internal organisation: – limited liability companies board elected by the municipal Internal organisation: –171 limited liability companies – limited liability companies – limited liability companies –limited liability companies –2,056 limited liability companies (s.r.o.) – limited liability companies (družba LPCs are mainly ciations sans but lucratif - ASBL) (anpartsselskaber - ApS) sabiedrībām) LEGAL limited companies chaft mit beschränkter Haftung - (iyksityinen osakeyhtö - Oy) mainly board, or executive and (Gesellschaft mit beschränkter LPCs are: a responsabilità limitata – Srl) ten Vennootschap - BV) board and general assembly or (sociedad de responsabilidad limi- council if the LPC is 100% owned executive and supervisory boards (společnost s ručením (osaühing – OÜ), the most (Korlátolt Felelőségű Társaság) LPC internal organisation: (spółka z ograniczoną LPC internal organisation: z omejeno odgovornostjo), the limited companies LEGAL GmbH) – cooperative companies (sociétés – cooperative companies (andels- Haftung - GmbH) tata) omezeným, s.r.o.) frequent – 258 limited liability companies odpowiedzialnością - Sp. z o.o) most frequent and limited liability selskaber med begraenser supervisory boards –legal entity under public law: pure – consorzi Internal organisation: board by the local government –public interest companies executive and supervisory boards executive and supervisory boards or limited liability FORMS coopératives à responsabilité (sabiedrībām ar ierobežotu FORMS companies Internal organisation: ansvar - AMBA) Internal organisation: LPCs, inter-municipal LPCs Internal organisation: general assembly holding majority LPC internal organisation: LPC internal organisation: (Közhasznú Társaság) LPC internal organisation: companies limitée - SCRL) atbildību) executive and supervisory boards –profit-sharing companies (I/S) executive and supervisory boards – legal entity under private law: board powers ("ordinary companies") or executive and supervisory boards executive and supervisory boards LPC internal organisation: executive and supervisory board CY MT In Flanders: interlocal, projects, service LPC internal organisation: Internal organisation: public/private LPCs executive and supervisory boards executive and supervisory boards compulsory in limited companies provider and mission associations (structural companies) executive and supervisory boards Intercommunales are public law entities board Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules : Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: Legal rules: No specific capital composition rules – intercommunales pures (100% Involvement of a sole local govern- No specific capital composition rules Public/private ownership, with the No specific capital composition rules "Pure LPCs": No specific capital composition rules At least 20% owned by local govern- No specific capital composition rules At least 50% local government No specific capital composition rules No specific capital composition rules No specific capital composition rules No specific capital composition rules No specific capital composition rules No specific capital composition No specific capital composition rules No specific capital composition rules No specific capital composition rules No specific capital composition rules the LPC creation requires at least ment Capital structure in practice: owned by public entities) ment limited at 49%, except for local government capital between Legal distinction between Eigenge- – LPC 100% owned by only one local Capital structure in practice: Capital structure in practice: owned capital Capital structure in practice: Capital structure in practice: but legal distinction, depending on Capital structure in practice: Local government own statute rules, except for hospitals, where pri- but legal distinction between 100% Municipal shareholding reduction Only counties can't create LPCs Capital structure in practice: two local governments some activities for which the local 50% and 85% and at least one Var ying capital composition rules in Mostly 100 % owned by local – intercommunales mixtes (with indi- sellschaft with a sole shareholder government Mostly 100% local government Mostly 100% public owned Legal distinction: More than 95% of LPCs have a 78% of LPCs are 100% owned by the capital structure with consequen- Mostly 100% owned by local distinguishes between LPCs 100% vate shareholders cannot own more local government companies under 66.6% of the capital Capital structure in practice: Most frequently 100% owned by Capital structure in practice: government can be the sole share- private shareholder network or service LPCs, depending governments, but tendency for local vidual or private legal persons) and Beteiligungsgesellschaft with – inter-municipal LPC 100% owned owned – LPCs 100% owned by local govern- 100% public owned capital local governments ces on their legal framework: governments owned by a local government (valla than 49% of the capital (pašvaldības kapitālsabiedrība) and governed by privatisation law 2/3 of LPCs are 100% local govern- local governments Mostly 100% owned by local govern- A capital structure holder on the competition tendering rules LOCAL PUBLIC COMPANIES IN government to open the capital Whatever its shareholding, voting Capital structure in practice: possible public/private by two or more local governments Sometimes public/private ownership, ments (empresas publicas) Public/private ownership in – regulated companies: local govern- Private shareholders in water, või linna aktsiaselts oo valla või linna Capital structure in practice: companies with local government Capital structure in practice: ment owned (water, sewerage) ments – a mixed capital structure is Open local rarely limited by (management transferred with or Private shareholders: mainly to other public shareholders, majority and presidency for the local Capital structure in practice: 35% of Sem capital owned by other ownership – cooperatives companies 100% with private shareholders chosen by – LPCs owned by local governments transport, energy, economic ment with at least 20% of the capi- sewerage osaühing) and LPCs with "municipal 100% local government capital is capital (kapitālsabiedrības ar nevertheless becoming more government share- law without competition tendering) Mostly 100% owned by local govern- Other shareholders than local domestic private companies – in a context of strategic alliances, government Mostly 100% owned by one or shareholders than local govern- Capital structure in practice: owned by public entities competition tendering and other public entities (empre- development, tourism sectors tal and actual control of the LPC participating interest" (valla või linna decreasing due to privatisation - pašvaldības dau) frequent, with private shareholders holding into LPC Capital stucture in practice: ments governments in the sectors of foreign shareholders in heating, APITAL THE 25 COUNTRIES OF THE EUROPEAN UNION CAPITAL the local government keeping several local governments ments, among which 15% owned by non-regulated companies osalusega aktsiaselts ou valla või shares often allocated to the Capital structure in practice: like private firms and employees capital C Mostly 100% local In Flanders, interlocal associations 80% of LPCs 100% owned by local – "popular companies" within a 2% LPCs mainly owned by local govern- sas de capitais publicos) – : local construction, energy, water waste and water and in large cities the majority structure ruled by a legal contract private shareholders, this share governments government with less than 20% of linna osalusega osaühing) companies executive directors Mainly 100% local government (water, sewerage, etc.) STRUCTURE government owned limit (ceiling) owned by citizens ments; trend to open the capital – LPCs with more than 50% of public (domestic groups, foreign groups) LPCs mainly owned STRUCTURE nd increasing in the new Sem the capital, without any actual Capital structure in practice: capital (80% of LPCs) 2 edition - tendency to open Capital structure in practice: In a few years, capital opening to "Public/private LPCs": to minority partners, particularly in entities (empresas de capitais Private shareholders are mainly by local control Mainly 100% local government the capital to In the electricity and gas sectors, private shareholders in 20% of LPCs, At least 50% owned by public the energy, water, transport sectors, maioritariamente) domestics and international groups, Local governments have less than governments private shareholders increase of local government share- mainly in water distribution, waste, entities the local governments keeping the Capital structure in practice: Blocking minority in regulated LPCs capital citizens, and LPCs executive 50% shares in 15% of LPCs Dexia, the leading European banking group in the financing of public holding in the intercommunales mix- housing, energy and public Capital structure in practice: majority Mostly 100% local government directors - State is also a Private shareholders are mainly transports, local governments Other shareholders than local shareholder tes to be expected at the end Mostly 100% owned by local govern- owned domestic groups and citizens keeping usually the majority governments: italian SME, foreign facilities and the provision of financial services to the public sector, of the liberalisation process ments has joined forces with the Fédération des Sem to work out a compa- important groups, banks, LPCs Contract to any activity non covered No legal rules regulating the delega- Competition tendering (procurement Competition tendering (procurement Competition tendering as the general LPC competition tendering by the Competition tendering for out Network: Contract to cover activities in the Contract to cover activities in the Competition tendering for out Competition tendering procurement Competition tendering for public Legally, no competition tendering Competition tendering with the No competition tendering with the Competition tendering with the Competition tendering (1994 Public Competition tendering (1999 Public No competition tendering with the rative chart of the different local public companies types and similar rule Direct transfer of the management to the LPC, MAIN Towards by the LPC’s statute tion of activities from the local contracts) to cover activities in the contracts) to cover activities in the shareholding local government contracting of public services company's statute and any other company's statute and any other contracting of public services rules, except for a LPC whose share- service management or procurement with the shareholder local shareholder local government as well shareholder local government shareholder local government Procurement Act) Procurement Act) shareholder local government MAIN Derogatory rules for housing and without competition tendering if: LPC is the net- structures in the 25 European Union countries. More particularly, the COMPETITION competition government to its LPC company's statute and any other company's statute and any other provision to cover activities in the work owner, or if LPC is 100% owned by local activity activity: competition tendering, holders are the sole customers contracts to cover activities in the government as with other clients Competition tendering for clients of (1996 Public Procurement Act) Competition tendering with other LPC competition COMPETITION planning na tendering as As awarder, LPCs are governed by activity activity na company's statute and any other governments except for LPCs 100% local govern- during its first three years of activity company's statute or any other tendering chart focuses on the corporate entities totally or partially owned by TENDERING Service: However in practice, competition ten- LPCs with a local government entities TENDERING general rule Public procurement Act activity ment owned activity FEATURES Direct transfer of the management to the LPC, dering organised for some shareholding exceeding 25% FEATURES European local governments. without competition tendering services in big cities

This publication has been realized in collaboration with the German Limited to the of the share- No territorial limits No territorial limits No territorial limits No territorial limits Limited to the territory of the share- No territorial limits Water and waste sectors: A.T.O. (ambito No territorial limits No territorial limits Limited to the territory of the share- Limited to the territory of the share- No territorial limits, but in practice No territorial limits, but in practice No territorial limits, but in practice No territorial limits, but in practice No territorial limits, but in practice No territorial limits No territorial limits No territorial limits, but in practice In practice, holding local government holding local government, except for territoriale ottimale) holder local government, except for holder local government within the shareholding local within the shareholding local within the shareholding local within the shareholding local within the shareholding local within the shareholding local In practice, within municipal enterprises Association (VKU) and the Austrian networks Others sectors: no specific territorial limits territorial liberalised sectors (ex. : electricity, transport and energy government territory government territory government territory government territory government territory government territory the shareholding TERRITORIAL TERRITORIAL All LPCs (both italian or foreign) having enterprises Association (VKVÖ). boundaries limited gas) na na local government OUNDARIES some directly-transferred management of BOUNDARIES B to the local local public services (i.e. without competi- territory It is an update and extension of the 1999 edition. government area tion tendering) can not take part to compe- tition outside of their territory Elected representatives Elected representatives Elected representatives or local civil Elected representatives Elected representatives Elected representatives Elected representatives Elected representatives or local civil Banning of local elected Elected representatives Elected representatives or any other Elected representatives or any other Elected representatives or any Elected representatives or local civil Local councillors In 100% local government owned Municipal councillors within the The or a deputy mayor Local councillors Forbidden for a local councillor to sit Local councillors or local Local councillors or other LOCAL servants or any other representative servants representatives in the LPC based on representative appointed by the local representative appointed by the local other representative, servants LPCs, municipal council acts as supervisory board appointed by the mayor on the executive board government employees, appointed by representatives appointed by LOCAL GOVERNMENT Local government appointed by the shareholding local court decision government government the LPC president being always an board of shareholders (constitutional tribunal decision, the municipal council the local government Mainly local GOVERNMENT KOMMUNALE UNTERNEHMEN IN DEN 25 representatives are government elected representative In LPCs with public shareholding, Oct. 2001): extra-municipal HAREOLDER councillors SHAREHOLDER S usually elected ones the local government executive representatives appointed by the MITGLIEDSSTAATEN DER EUROPÄISCHEN UNION REPRESENTATION board is its representative mayor REPRESENTATION Tariff setting by the LPC Tariff setting by the intercommunale Tariff setting by the LPC Tariff setting by the local For water and sewerage: local For electricity and gas: electricity Tariff control by the local Tariff setting by the LPC, with local Tariff setting by the local Tariff setting by the local government Tariff setting by the local government Tariff setting by the LPC, except for Tariff setting by the LPC, except Tariff setting by the municipality, For water, sewerage, heating, waste, For public transport, housing: Tariff setting by the local For waste: local government Tariff setting mainly by the local 2. Ausgabe Tariff ceilings in the sectors of water government government and gas regulatory national authority government on the basis of the government approval government in case of monopoly services (water, or by the LPC heating, sewerage, public transport for public transport (local except for electricity and gas (State) national road transport (law on regu- municipalities government, generally on the LPC For water, energy, heating: office for government, by the LPC itself in contract provision government) and energy if not lators of public services): regulatory proposal within ceilings set by a competitive market, by the and energy (for the latest, by regula- For electricity: LPC within a scale set (at local level) waste, energy distribution) (municipality) For Budapest public transport, joint- For heating, water: municipalities in regulation of network industries Depending on the specified in the contract (national agencies (independent entities the State in some sectors (energy government only in a reducing Tariff setting by the tory authorities) up by the Land (Land ministry of Eco- For transport: public authorities decision between the Capital city coordination with the State price and For public transport, heating, sectors of activity, authority) created by local governments) for example) inflation policy LPC or the local nomy with Bundesrat approval) and (local governments) and the State energy control commission cemeteries: districts (State tariffs set by the Weltweit führend in der Finanzierung öffentlicher Infrastrukturen und TARIFF government, TARIFF na submitted to authorization na na For water and waste: LPCs, within For housing: housing rent ceilings For health: Public health Ministry administration) local government, controlled by regula- Finanzdienstleistungen im öffentlichen Dienst, verfaßte die Dexia- SETTING For passengers transport: tariffs criteria set up by central set by the law For other services: LPC For housing: ceiling prices set by by regulation SETTING tory authorities in submitted to authorization administration For other services: local government Ministry of Finance authorities, or, less Gruppe zusammen mit dem französischen Verband gemischtwirt- some sectors For other services: LPC or LPC often, by the LPC schaftlicher Unternehmen SEM (Fédération des SEM) eine synop- For other services: LPC tische Vergleichstabelle der verschiedenen Unternehmen mit öffentli- cher Beteiligung und vergleichbarer Strukturen in den 25 Mitglieds- Management control by the local Ex post control by the local govern- Control by the local government Ad hoc regulatory authority for some Control by the local government Control by the local government and, Local government budget Department of Environment Control of LPC activities by an Control by the National Audit Com- Local government approval required Local government approval required Control by the local government Regulated LPC loans control by State State inspection control for some Auditing committee composed of Municipality control committee Annual reports approved by local Municipality control authority for a National control office Prior approval required by Local control committee (nadzorni ländern der Europäischen Union. Die vergleichende Tabelle berück- government - the statute of ment (budget, decision taking) Ministry of Industry legal control for activities: for energy, State control Ex post control by the State repre- at its request, by the local audit supervision Local government ad hoc regulatory authority on national mission for LPCs owned by local for all LPC basic decisions (budgets, for forecast and executed budgets Control by citizens Control by local government auditors public services municipal councillors composed of municipal councillors government auditing committee (not company 100% owned by the (NIK – Najwyższa Izba Kontroli) municipal council for important odbor), appointed by the municipal the association can allow a right Supervisory control at federated LPCs covered by 384 Act on the electricity market sentative (préfet) Authority (local government control State legal control (ministry of and local public services governments and State management report, loans, etc.) LPC accounts control by the National State Audit office (financial control Municipality finance committee and compulsory) municipality decisions council LPCs closely PECIFIC SPECIFIC LPCs controled by General auditor Principle of free access to the admi- S to veto or approval for the local levels on the efficiency of its representati- Trade) Nowadays, regulatory authorities A third of auditors appointed by the Audit Commission on ownership and subsidies) other possible ad hoc committees State audit office control State control authority for Auditors Court controlled by the sichtigt dabei insbesondere Unternehmensformen in hundertprozent- local government or Ministry of Interior legal control for Control by the regional audit Com- Monitoring committees under the nistrative documents of LPCs UBLIC PUBLIC government (staff management) ves in the LPC) only for gas and electricity sectors local government depending on the municipal council municipal enterprises and mixed local government P iger bzw. partieller kommunaler Anteilseignerschaft. national authorities LPCs covered by the unwritten local mission National Development Plan (Act 1980 on Official Secret) County governor (State authority) CONTROLS government laws or by the 383 Act Supervisory control by the Land (the same for two sectors) Prior approval by municipal council decision capital companies & the State CONTROLS Diese Veröffentlichung entstand in Zusammenarbeit mit dem deut- required for important decisions schen Verband VKU und dem österreichischen Verband VKVÖ. Sie aktualisiert und vervollständigt die vorherige Version von 1999. Grants Grants by the local government, with Grants Loans Grants with control on their use Possible tax equalisation for Deficiency grants forbidden except Loan guarantees Grants (compensation of service Support to LPCs with financial Grants Local government support necessary Financial support for LPCs with Grants Grants through contracts Grants Loan guarantees No grants Grants Grant by the local government to the Subsidies Grants Support to LPCs with financial control on their use Loan guarantees for LPCs 100% Loan guarantees Support to LPCs with financial associated LPCs aiming at for the media companies agreement) difficulties (appointment of a Loan guarantees to exercise the activity financial difficulties Loan guarantees Loans or loan guarantees by Financial subsidy to compensate Financial subsidy to compensate Loan guarantees LPC only within a public service mis- Loan guarantees Loan guarantees Local support: LOCAL difficulties National tax exemptions owned by local governments difficulties equalisation (Querverbund) Loan guarantees government controller) Cap on the regulated LPC’s loans the local government are forbidden lack of revenue due to local govern- lack of revenue due to local govern- sion LOCAL grants, loans, loan Basic Credit Approval by law ment imposed tariffs ment imposed tariffs Loan guarantees GOVERNMENT guarantees, support Financial support when contractual Possible grants GOVERNMENT Loan guarantees by local to LPCs in difficulty operations National support: company tax or loans guarantees FINANCIAL government for LPCs with a local FINANCIAL and National fiscal exemption for non-profit making government majority shareholding or SUPPORT support LPCs limited by guarantee SUPPORT several local governments exceeding 65%

Municipal networks enterprises Unions des villes et communes, Sem : Fédération des Sem Associations by sectors of activity, Association of Greek Local The Italian Confederation of Local Provinces and municipalities The Swedish Organisation for Local Associations by sectors of activity Associations by sectors of activity, Associations by sectors of activity, Chambers by sectors of activity (izba Associations by sectors of activity, Associations by sectors of activity LPC Association Austria - Verband kom- APRIL, Inter-Régies, Intermixt, for among which the main following ones: Enterprises Public Services: Confservizi (Confe- Federation: Federación Española de Enterprises: Kommunala Företagens among which: Public Cleaning Asso- among which the Lithuanian gospodarcza), among which the among which the Slovak Public MAIN Association of municipalities and Representative munaler Versorgungsunternehmen network intercommunales etc. Municipal enterprise Association - derazione nazionale dei servizi) Municipios y Provincias - FEMP Samorganisation - KFS ciation - Köztisztasági Egyesület; Communal Services and Waste water sector (Izba gospodarcza Works Association - SPWA LPC LPC towns Representative bodies by sectors Osterreich - vkvö, and other na na Verband kommunaler Unternehmen - na na na na na Public Services Enterprises na Management Association (LIETUVOS wodociągi polskie) or the urban (Zdruzenie organizacii verejnych prac bodies by sector REPRESENTATIVE EPRESENTATIVE of activity associations by sectors of activity VKU ; Transportation Enterprise Asso- Association - Települési KOMUNALININKŲ IR ATLIEKŲ TVAR- transport one (Izba gospodarcza - ZOVP): environment, R of activity BODIES BODIES ciation - Verband Deutscher Verkehr- Szolgáltatók Egyesülete KYTOJŲ ASOCIACIJA): waste and komunikacji miejskiej) cemeteries, local roads sunternehmen-VDV public cleaning

© 2004 Dexia