Understanding the public statistical enterprise: definition, category and issues - NofWeb

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Saturday, November 25, 2023

Understanding the public statistical enterprise: definition, category and issues

 

What is a public stat company?

To begin, it is necessary to establish a precise definition of the term “ public statistical enterprise ”. Generally speaking, it is a company whose capital is majority owned by the State or by a local authority , such as a region, a department or a municipality.

These companies are subject to the legal regime of private law, which means that they have a certain freedom in their internal operations and management, but they are also regulated and supervised by public authorities. Their main objective is the provision of public services or the carrying out of actions of general interest, which often implies a broader aim than a strict profit motive.



The different categories of public statistical companies

Public stat companies can be classified into several categories depending on their method of formation, their sector of activity or even their size. Here we will present four main categories among the most common.

1. National public enterprises

These are companies whose capital is wholly or majority owned by the French State. They generally have a public service mission on a national scale and often fall within strategic sectors, such as transport, energy, health or communication. Among the most emblematic examples of this category, we can cite SNCF, EDF, La Poste or France Télévisions.

2. Local distribution companies (LDCs)

Local distribution companies are state-owned public companies which ensure the supply of energy (electricity, gas) in a given territory, at the local or regional level. They are most of the time owned by local authorities and replace the historical managers (ERDF, GRDF) in certain geographical areas.

3. Mixed economy companies (SEM)

SEMs are companies which have capital shared between public actors (the state, local authorities) and private actors. Their objective is to reconcile the general interest with the economic and financial dimensions specific to any company. SEMs are involved in particular in the areas of urban planning, social housing and the management of local public services.

4. Public enterprises of an industrial and commercial nature (EPIC)

EPICs are public establishments with a public service mission relating to an industrial or commercial aspect. Their management is subject to the legal regime of private law, but they may also be subject to certain specific constraints due to their public status. The EPICs cover a wide diversity of fields, ranging from scientific research (CNRS) to audiovisual production (INA) via regional planning (AFITF).

What legal framework for public stat companies?

The legal framework applicable to public stat companies depends in part on their status and the category to which they belong. In general, these companies are subject to private law , particularly with regard to the management of their human resources, their internal organization and their economic functioning. However, due to their public status, they must also respect a certain number of rules linked to the public sector, such as financial transparency, accountability to supervisory authorities or respect for the principles of equality and non-discrimination .

In certain cases, the French legislator has also provided for specific provisions applicable to different categories of public stat companies. For example, ELDs are subject to a specific legal regime which takes into account the specificities of the energy sector. SEMs must respect several conditions to benefit from their status and be authorized to operate.

Issues and challenges of public statistical companies

Public statistical companies face many challenges in the current economic context. Among these major challenges, we can notably mention:

  • Adaptation to competition : With the gradual opening of markets and liberalization policies, certain public stat companies find themselves facing increasing competition with private players. They must therefore adapt their strategies and innovate to maintain or develop their market share.
  • The search for efficiency and performance : Like any company, public stat companies must ensure that they optimize their management and internal processes in order to improve their competitiveness and profitability. This involves, in particular, rationalizing costs, better organization and modernizing work tools.
  • The ecological and energy transition : Public sector companies are often involved in environmentally and/or energy sensitive areas (transport, energy production, etc.). They therefore have a role to play in contributing to national and international objectives in terms of sustainable development and the fight against climate change.
  • Taking into account new needs and expectations of users : Public statistics companies, as providers of public services, must listen to citizens and respond to changes in society. This involves adapting to digitalization, the aging of the population and the emergence of new social and environmental concerns.

Thus, public stat companies are faced with varied challenges and must constantly evolve to ensure the proper functioning of public services while taking into account the specificities inherent to their status.

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