Brussels, 20/06/2003 (Agence Europe) - In a communication on the reform of State owned enterprises (SOE) in developing countries, the European Commission encourages the Union to play a more active role in assisting partner governments in developing countries in their design of SOE reform, with emphasis on public services. The Commission does not intend that the Union should interfere in the ownership of public utilities in these countries - the principle of strict neutrality is imposed on it by the Treaty - but that, in the context of its development policy, it should help these countries to transfer emphasis placed on questions of ownership to the aim of reform, namely guaranteed access for the largest number of people to affordable and quality public services. The Commission considers that reform of the State owned companies in developing countries could, simply because of the size of the sector, have a considerable impact - either positive or negative - on the public deficits of these countries, the quality of essential services provided and therefore ultimately their ability to deliver on the Millennium development goals to which the EU is strongly committed.
The measures recommended so that the Union contributes to a positive impact of such reforms in partner countries are:
The Commission will initiate dialogue with the local authorities and Bretton Woods institutions (World Bank, IMF, United Nations) in order to contribute to the clear definition of the aims of reform of State owned enterprises, make a detailed examination of all the possibilities, guarantee full transparency in the process, and set up an adequate regulatory framework allowing the good implementation of reform to be supported.
Once the partner countries have adopted decisions concerning this reform, it will be up to the EU to mobilise the necessary development policy instruments to support implementation of the reform. The Commission, for its part, will strengthen its technical assistance to partner governments at every stage in the process.
In a press release, Poul Nielson, Commissioner for Development Policy, states: "Now is the time for the EU to involve itself more actively in the debate on SOE Reform. We have vast experience in the field and therefore an obligation to make our contribution. We are not here to offer a one-size-fits-all concept. (…) At the end of the day reform of SOE in the public utilities sector has too far reaching consequences for the local economies - and therefore ultimately for poverty alleviation - to be left to dogma and prejudice".