Privatisation generally means the same like denationalization: It designates the change from the public special right to private law, which transition of national jurisdiction/control and/or welfare service obligation to private-economical activity, in which then the public interest must be considered less, since also profits must be made, while often only the loss minimization was the center of attention before.

Kinds of the privatisation

It is differentiated between different kinds of a privatisation from functions of the administration:

1. The bare transformation of a public enterprise with public legal form (public utility, own establishment etc.) into an enterprise with legal form under private law (GmbH, AG). If the enterprise thereafter is controlled further completely by the public hand calls one this form formal privatisation.

   Example: Transformation of the German Federal Railroads into the German course AG.

2. The removal of whole ranges from the range of the national influence, approximately by the sales of portions of the public hand of an enterprise of legal form under private law (genuine and/or material privatisation), usually over the stock exchange.

   Example: The Free State of Bavaria sells its portions to the VIAG.

3. The transmission of tasks, those so far by state institutions were fulfilled (e.g. execution) on private enterprises (functional privatisation).

   Example: Building and enterprise of a motorway.

With respect to the linguistic usage between these different meanings of the term "“privatisation"” is frequently not differentiated cleanly. To the confusion also it contributes that in practice often combines two of three different circumstances arise (examples: Transformation and allocation of the Federal Post Office in three AGs and sales of Telekom shares, sales of federal printering to a private enterprise).

The opposite of the privatisation is the nationalization.

Privatisation in Germany

Legal aspects

The legal situation in Germany sets only few limits to the privatisation. The Basic Law does not contain an final catalog of the state functions. Even so far the Basic Law e.g. over the welfare state principle certain public tasks plans, does not prescribe it not that these must take place compellingly via the state, if private carriers can settle this just as well. The liberal fundamental right catalog favours the dismantling of public monopolies even. Also increasing Europeanizing of the commercial law limits the clearance of national economic activity increasingly. A genuine border for privatisations offers kind 33 in Germany however the function reservation of the exp. 4 Basic Law, which plans that the practice of sovereignty-legal powers is to be usually transferred the official. This e.g. prevents that the police tasks in the closer sense are denationalized.

Accomplished privatisations on federal level

In the Federal Republic of Germany several large mechanisms and special estates of the federation were converted into private property forms:

• Federal Institution for air traffic control into the German air traffic control GmbH
• The Federal Post Office - into German post office AG, German Telekom AG and German postal bank AG
• German Federal Railroads and German National Railroad - into the German course AG, whereby, differently than at the Federal Post Office, the special estate railway remained existing (see federal railway abilities)
• German federal printering - into a GmbH
• Lufthansa - gradual into an AG
• Society for subsidiary establishments of the federal motorway - in tank and rest GmbH
• Large parts of the state property of the former GDR were sold after the reunification, predominantly by the trust establishment. This was divided 1994 into several organizations, the most important of it was the Federal Institution for combination-conditioned special tasks.

Accomplished privatisations on regional level

• 2004 privatisation Hamburg national enterprise of hospitals (12,400 coworkers) by the CDU senate under Ole of Beust despite opposing result of a popular vote in February 2004 (77 per cent against this privatisation)
• Center of the 90's: The country Baden-Wuerttemberg separates the department of "“official gazette"” in the Department of State and transfers it into the official gazette publishing house GmbH (seat Stuttgart).
• Under the slogan "„shapes instead of possessions "“the Free State of Bavaria sold since 1994 participation in the value of more than 9.6 billion DM or 4.9 billion "€, among them national portions other Bayernwerk AG, the Daimler Benz Aerospace AG, VIAG and E.ON. The privatisation earningses were invested to a large extent into the offensive future Bavaria.

Planned privatisations on regional level

• In May 2005 the federal state parliament of Lower Saxony in a household examination decides the sales of its 10 national hospitals, although it is legally not clarified whether this sales is so possible. Finally in the national hospitals also patients in the measure execution are treated. The measure execution is regarded however as a part of the core range of the national force monopoly. Privatisations within this range are however constitutionally only reduced possible (to it down).

• The federal state government of Baden-Wuerttemberg considers the sales of the official gazettes for Baden-Wuerttemberg GmbH. The sales is to be carried out in the year 2006.

Prevented privatisation in Germany

• In the city at the Ruhr is rejected on 27 February 2005 by preventing citizen decision the privatisation of the urban enterprises with 27.435 to 5,870 voices. The minimum number of votes necessary with this procedure is scarcely reached.

Privatisation in Austria

In Austria for privatisation purposes the Austrian industrial getting thing AG was created. It continues as "“privatisation agency"” and participation getting thing, portions

• OMV AG,
• SGP traffic engineering GmbH,
• Austria micro of systems internationally AG,
• Austria technology & system engineering AG,
• works,
• VOEST ALPINE STEEL AG,
• VA Tech AG,
• VAE AG,
• VAMED AG,
• TAMROCK VOEST ALPINE mountain technology total one Ltd.,
• Austria metal AG,
• Austrian saltworks AG,
• Austria tobacco AG
• Roof stone of tourism AG.

1998 was transferred beyond that the the portions of the federation of the Dorotheum and of the Austrian state State of, Austrian Airlines Austrian one of air traffic AG and airport Vienna AG for participation administration.

Privatisations in Switzerland

In Switzerland national enterprises are on canton and district level, the federation only in the infrastructure and arms range to active became business mostly. Many federal enterprises and kantonalen enterprises, particularly in the infrastructure and bank range, so far into private-economical legals form were only converted, were not denationalized however. Examples for it are:

• SBB
• Swisscom
• Swiss post office
• Ruag
• different cantonal banks
• different current companies

With the sales of the airline SWISS to Lufthansa it did not concern a privatisation, since Swiss state was only financially involved there, without being owners.

Arguments for the privatisation

In opinion of the proponents privately led enterprises settle tasks more efficiently than the public hand. Publicly led enterprises are often high-subsidized losing transactions.

By competition of private competitors come it to price reductions for products and services. For example the costs of telecommunication service achievements constantly sank in Germany since the privatisation of the Federal Postal Administration.

Within the denationalized ranges develop also one a desirable new service culture, which steps to the place of a former official mentality. The market can fulfill needs better than an often ponderous (national) administration. By the competition of different offerers steige the quality.

Also lead privatisation to a multiplicity more at services, services and products. An example of it are fast Internet connections over DSL in Germany. To critics of the former national monopolist accused this innovation readiness lacking and doubt that it would have given DSL connections in Germany so fast at all.

The partial privatisation of the transmitter frequencies of the television under Helmut Kohl (private televisions) brought a large increase in program variety and thus more options for the consumer. The public transmitters were so forced to change program plans over and to set more to similarly popular transmissions.

Besides the state is to withdraw itself in principle from as much as possible denationalizable ranges and be limited to tasks of core, because this promotes the economic growth and the occupation after restaurant economics theories finally.

See also: in the state theory

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