We will reform, not sell off the public sector. The strategically important companies should remain in a majority state ownership, but must be restructured and freed from political party strains and business irrationality. The reform of the public economy sector is necessary in order to allow higher investments, which means higher employment.
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The role of the government should be reduced by deregulation in the field of prices, but first competition needs to be introduced wherever possible. DSS emphasizes the extreme importance of the decision on which strategically important public enterprises should remain in majority state-ownership, where the state should retain the possibility of having an influence in strategically important decisions (the right of veto, the “golden share” …), as well as defining these decisions. Therefore, DSS believes that this topic must be under the jurisdiction of the highest authorities of the State- the National Assembly.
State-owned enterprises: In majority state ownership should remain public companies engaged in activities that have the character of a natural monopoly, when the introduction of competition is irrational or impossible due to the nature of the process of providing services or lack of interest of investors. In cases where the company remains majority state-owned, it is necessary to restructure and ensure good corporate governance.
In the past, public companies developed a wide array of activities that were not always related to the basic purpose of business, which diminished the results of the Company, to the detriment of the development activities of common interest. In the first phase of restructuring it is necessary to responsibly reduce allocations for conducting supporting and non-core activities to reach advanced business organization. In the second phase of restructuring, aimed at a more efficient management and implementation of activities should be carried out merger activities or separation of certain parts of the company at the technical boundaries of the system, or according to rounded economic entities in order to create conditions for cost control and efficiency, through price transfer, and to facilitate the adoption of various strategies of privatization of some parts of public companies, coordinated with the general strategy of restructuring a specific firm. After the organizational phase follows the financial restructuring, which should resolve issues of allocation of capital, current liabilities, and income distribution in separate organizational units. Financial restructuring will ensure a healthy financial situation of public enterprises, before privatization, which is a basis for a good initial estimate of value, but also a responsible determination of the minimum acceptable price in the sales process. After valuation, the company should turn into a limited company, i.e. into a corporation.
Privatization: Privatization is not necessarily associated with the sale of parts or whole public companies. It is possible to get to private participation in the public sector by opening more room for investments in public services through the establishment of new enterprises through the granting of concessions, public-private partnerships, service contracts to local governments and other models.
Municipalities and cities should play a decisive role in making key decisions in the privatization of public utilities. It is possible to give rights for private investors to provide the same type of service, creating space for private landfills, parking services, markets, gas-distribution companies and the like to appear on the market.
The prices of public services should in the next few years lead to a realistic level, because their undervaluation reduces the prices of companies to be privatized, the investment potential and interest of foreign investors to participate in this process. Citizens who are threatened by the growth of prices on a realistic level, need help from state social funds or through the adoption of adequate tariff systems of payment of public services.
