Ministers present a new legal framework for state-owned companies

The new legal framework for the management of state-owned enterprises was presented on Thursday by the finance and economy ministers and their associates. The new framework implies the clear and transparent setting of financial and non-financial goals by the government. The goal is to also contribute to the professionalization of supervisory boards and management boards in these companies.

The new legal package for improving the management of state-owned legal entities was presented at the National and University Library by Deputy Prime Minister and Finance Minister Marko Primorac and Economy Minister Ante Šušnjar, with both agreeing that there is significant room for improving the management of state-owned companies.

This includes the proposal for the Act on Legal Entities Owned by the Republic of Croatia and the proposal for the Act on the Restructuring and Sale Center (CERP), which will be submitted into public consultation on Friday. Minister Primorac stated that the state has a majority ownership in more than 900 companies, and that the vast majority of them, more than 800, are under the jurisdiction of counties, cities and municipalities. Only ten of them are in the CERP portfolio, while there are another 36 special interest companies, which are the focus of these reforms.

Primorac said that while these companies are not numerous, they are the most significant, generating €12.2 billion in revenue last year, which comprises roughly 84% of the total revenues of all legal entities owned by the state, regional and local levels of government. For comparison, Primorac said, the central government's revenue last year amounted to €23 billion.

The total assets of all legal entities in state ownership amounted to €54.3 billion last year, of which €43.6 billion relate to special interest companies. In terms of ownership rights, the companies are dispersed among ministries, with the most, 19, falling under the jurisdiction of the Ministry of the Sea, Transport and Infrastructure, while the Finance Ministry has a coordinating role.

Source: HRT