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Europe Daily Bulletin No. 8647
Contents Publication in full By article 27 / 38
GENERAL NEWS / (eu) ep/development

Wide support for Commission communication on state owned enterprises in developing countries - no privatisation at any price

Strasbourg, 17/02/2004 (Agence Europe) - Following the line of its rapporteur Hans Modrow (PES, Germany), the European Parliament has welcomed the approach followed by the European Parliament in its communication on reform of state run companies in developing countries and has approved in particular the Commission's declaration that reform of state enterprises in developing countries when it declares that "reform of the state run enterprises in developing countries should not in any way be limited to privatisation measures but on the contrary, the options are to be examined on a case-by-case basis". (Hans Modrow was prime minister of the German Democratic Republic between November 1989- March 1990). The resolution highlights the importance of ensuring better services of general interest and notes that "in the area of public services, there is an historical analysis of the situation in all developing countries, following independence and throughout the last fifty years". It demonstrates that the sectors that have particularly failed are in the provision of water and energy, waste water treatment, education and health "when they are within the exclusive remit of the public sector". Parliament considers that it is necessary to encourage developing countries to create "the legal and economic conditions that allow for the constitution of co-operatives, as well as private-public partnerships, for assuming the tasks of state owned enterprises. It also calls on the Commission to help developing countries that seek diversification in their financial and banking sectors, so that they are able to grant "modest loans and micro-loan facilities". In this context, parliament underlines the importance of improving women's access to micro-loans, given the role they play in the local economy.

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