EU countries are missing a big opportunity to boost growth and cut debt by privatising state assets, according this report. The Privatisation Goldmine says that economic performance would be improved by the impact of privatisation on productivity.
Releasing this potential could increase GDP by between 2% and 3% in Eurozone countries such as France, Spain and Italy.
Meanwhile debt could be cut by nearly 6% in Spain and 5.5% in France.
The study, by economists Dr. Julia Borrmann, Dr. Christian Helmenstein and colleagues at the Vienna Economica institute, says that the experience of privatisation has demonstrated clear improvements in terms of higher productivity and growth, with benefits shared by consumers, tax payers and investors.
The gains come from greater competition in capital and consumer markets, with sales allowing governments to cut debt and improve tax revenues from higher profitability.
But in most EU countries there are few plans for privatising government companies and other assets, despite the economic crisis.DOWNLOAD DOCUMENT
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