Tue, Jul 29, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: State-owned enterprises - an economic tool for Europe

Thursday, May 12, 2011

This column was authored by Dag Detter an independent advisor and state asset specialist. He is the former President of the Swedish Government Holding Company Stattum and the Government Director of State-Owned Enterprises.

While the World grapples with a great experiment to establish whether confidence in the economy can best be rebuilt through fiscal austerity assisted by nominal currency depreciation through fiscal austerity alone or enhanced stimulus, the challenge for Europe could also address a vital part of the economy that has remained untouched by recent reforms, namely government controlled commercial assets or State-Owned Enterprises (SOEs).

With numerous recent and notable additions, a sizeable part of the commercial sector remains in government hands in many developed economies. The scale of these assets according to the OECD now amounts to at least USD 3 trillion, which exceeds the value of the global private equity and hedge fund industries combined. Without reforming these burgeoning national state sectors, genuine economic reform cannot be achieved this time around the cycle. Whether in southern or northern Europe, SOEs tend by their very nature to be an unholy alliance between commercial and political objectives and of sufficient size to stifle economic growth.

SOEs which are often in the energy, forestry, real estate and transport sectors form an untapped resource for reducing the national budget deficit and driving economic growth. Althou......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro