How State Aid Rules May Affect Privatisation Efforts Of Member States

Slovenia is currently envisaging a new wave of privatisations. The looming sales are associated with political pressure centring on certain non-economic conditions to be imposed on the eventual acquirers. Such conditions may collide with EU state aid rules. The privatisation process must thus be structured carefully to avoid objections from the European Commission.

Introduction

Privatisations generally trigger significant public attention. The implicated undertaking is often a national champion and the pride of the national economy, which is why a plan to sell such company is – as a rule – met by fears of the public over the transfer of national know-how abroad, a drop in the national employment rate, and a loss of domestic investments.