JHL (25.03.2013 - Heikki Jokinen) The government is preparing new legislation requiring municipalities to establish companies instead of public enterprises. The Act is based on European Union competition legislation, which sees public enterprises as a form of public support and thus serve to distort competition. Public enterprises must now be re-established as companies if they operate in a field where private competition also exists.
Director Päivi Niemi-Laine from JHL claims that there is no need to corporatize a municipal enterprise if it only sells services to its owners or to the municipalities it is serving. "It is important to consider, too, the possibility that the enterprise will withdraw from the market. In this case there is no need to corporatize it", she says.