The public sector includes/understands on the one hand the Public administrations of the State and the Local government agencies, and on the other hand the companies of which at least 51% of the Authorized capital are held by the State or of the national administrations, regional or local.

The statute of the State enterprises is variable, certain concerns the common right and generally has the statute of Public limit company, other concern the public law ( public corporation).

Public sector and public service

Public service and public sector is two different concepts.

  • Certaines functions considered as concerning the public service can be assured by the private sector, generally by public service delegation: Distribution and water treatment, collect waste, etc

  • Contrary, of the functions without much relationship with the public service are sometimes ensured by the public sector: Cigarettiers, productions of explosives, (SNPE in France), etc

Monopoly and public sector

See also: natural Monopoly

When the public sector is seen entrusted a Monopole in Commercial sector (in France, horse cases of Paris, or until recently of the electrical production), this is done in a strictly defined regulation framework. When the public sector intervenes out of a monopoly, it belongs to the regulator or to the legislator to make sure that the entry of this actor will not upset the market. Indeed, if the taxation of the public sector, or the public allocations make it possible a public actor to propose tariffs in lower part of the contract prices and to durably modify the balance of this market, the economic consequences can be serious and indirectly result in founding a monopoly in fact.

In France, efforts were made by the legislator to bring closer the countable and tax rules to the public sector of those of the Private sector.

See too

Simple: Public sector

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