Government-owned
Enterprises in Italy: Some
Stylized Facts
Bernardo Bortolotti, Laura Pellizzola, Carlo Scarpa
Prague, February 15th 2007
The debate
 Municipal capitalism
– By-pass constraints on local public
finance?
– Distort competition?
 No systematic study of the weight of locally
owned limited companies
 Our paper…
2
The database
 AMADEUS :
– i) operating revenue ≥ €15 million;
– ii) total assets ≥ €30 million;
– iii) number of employees ≥ 200
 No small firms
 No public administration
 No financial firms
3
Italian firms
 22.844 Italian firms in the database, 572 with a
participation by central or local governments
– Government owned enterprises (GOEs)
 Consolidated accounts: down to 404 GOEs
– 21 listed, 383 unlisted
 Public shareholders:
– State
– Region
– Province
– Municipality
4
The sample
LEVEL OF GOVERNMENT
Number
of GOEs
of which
Listed
Unlisted
Total
Assets
Mln €
Average
Total
Assets
Mln €
Operating
Revenues
Mln €
Average
Operating
Revenues
Mln €
Number of
Employees
Average
Number of
Employees
CENTRAL GOVERNMENT
30
7
23
362,896
12,097
181,013
6,034
455,332
15,178
REGION
16
0
16
2,225
139
1,009
63
6,220
389
PROVINCE
14
1
13
1,378
98
1,000
71
3,582
256
231
10
221
62,425
270
27,822
120
134,750
583
17
1
16
3,859
227
1,050
62
7,901
465
REGION AND PROVINCE
2
0
2
675
338
352
176
4,120
2,060
REGION AND MUNICIPALITY
9
0
9
2,136
237
1,039
115
8,071
897
REGION, PROVINCE AND MUNICIPALITY
22
2
20
5,088
231
1,683
77
12,069
549
PROVINCE AND MUNICIPALITY
63
0
63
8,920
142
3,836
61
27,167
431
404
21
383
449,603
1,113
218,805
542
659,212
1,632
MUNICIPALITY
MIXED CASES of which CENTRAL AND LOCAL GOVERNMENT
TOTAL
5
Locally owned firms, region by region…
REGION
Number
of GOEs
of which
Listed
Unlisted
Total
Assets
Mln €
Average
Total
Assets
Mln €
Operating
Revenues
Mln €
Average
Operating
Revenues
Mln €
Number of
Employees
Average
Number of
Employees
LOMBARDIA
61
3
58
27,970
459
10,193
167
36,235
594
LAZIO
20
1
19
12,465
623
5,263
263
39,745
1,987
EMILIA ROMAGNA
29
1
28
7,155
247
4,215
145
15,008
518
PIEMONTE
24
2
22
6,249
260
2,876
120
13,124
547
VENETO
35
1
34
4,993
143
2,509
72
12,804
366
TOSCANA
39
0
39
3,210
82
1,773
45
9,502
244
CAMPANIA
20
1
19
2,846
142
1,061
53
13,855
693
LIGURIA
12
1
11
1,947
162
1,175
98
10,284
857
TRENTINO ALTO ADIGE
12
0
12
1,302
108
653
54
3,259
272
SICILIA
13
0
13
1,153
89
591
45
8,113
624
MARCHE
12
0
12
804
67
383
32
2,190
183
UMBRIA
7
0
7
528
75
284
41
2,244
321
FRIULI VENEZIA GIULIA
7
0
7
472
67
284
41
2,764
395
ABRUZZO
7
0
7
366
52
187
27
2,378
340
10
0
10
317
32
258
26
3,175
318
VALLE D'AOSTA
4
0
4
305
76
528
132
1,432
358
MOLISE
1
0
1
127
127
18
18
75
75
BASILICATA
1
0
1
117
117
59
59
369
369
SARDEGNA
3
0
3
108
36
132
44
1,151
384
CALABRIA
2
0
2
40
20
25
12
518
259
ITALIAN STATE
30
7
23
362,896
12,097
181,013
6,034
455,332
REGIONS
38
3
35
10,372
273
4,274
112
17,754
467
REGION AND ITALIAN STATE
17
1
16
3,859
227
1,050
62
7,901
465
404
21
383
449,603
1,113
218,805
542
659,212
1,632
PUGLIA
OTHER CASES - of which
TOTAL
15,178
6
…sector by sector…
SECTOR
Number
of GOEs
of which owned by
Central
Local
Government Government
Total Assets
Mln €
Central
Government
GOEs share
Average
Total
Assets
Mln €
Operating
Revenues
Mln €
Average
Average
Operating Number of
Number of
Revenues Employees
Employees
Mln €
PETROLEUM INDUSTRY
1
1
0
83,850
100%
83,850
74,526
74,526
71,303
71,303
CONSTRUCTION INDUSTRY
9
1
8
2,201
66%
245
223
25
540
60
748
MANUFACTURING INDUSTRY
14
5
9
24,670
94%
1,762
13,654
975
10,474
SERVICES INDUSTRY
55
10
45
23,092
85%
420
7,428
135
36,474
663
3
2
1
4,002
91%
1,334
3,100
1,033
20,327
6,776
10
0
10
586
0%
59
634
63
2,094
209
1
1
0
47,886
100%
47,886
9,322
9,322
148,371
148,371
108
7
101
146,609
82%
1,357
26,883
249
229,003
2,120
11
0
11
5,208
0%
473
1,660
151
6,082
553
TELECOMMUNICATION INDUSTRY
TRADE INDUSTRY
POSTAL SERVICE INDUSTRY
TRANSPORTATION - of which
HIGHWAYS INDUSTRY
7
3
4
98,409
100%
14,058
10,415
1,488
103,753
14,822
LOCAL TRANSPORT INDUSTRY
65
0
65
11,897
0%
183
5,597
86
69,862
1,075
TRANSPORTATION INFRASTRUCTURE INDUSTRY
23
3
20
26,120
69%
1,136
4,387
191
30,458
1,324
2
1
1
4,975
100%
2,487
4,824
2,412
18,848
9,424
RAILWAYS INDUSTRY
TRANSPORTATION SERVICES INDUSTRY
UTILITIES - of which
203
3
200
116,707
53%
575
83,035
409
140,626
693
ELECTRICITY AND GAS INDUSTRY
44
3
41
87,183
71%
1,981
69,008
1,568
71,621
1,628
WATER AND SEWERAGE INDUSTRY
57
0
57
9,078
0%
159
3,389
59
15,300
268
REFUSE SYSTEMS AND SANITARY SERVICES
51
0
51
4,479
0%
88
2,861
56
28,931
567
MULTIUTILITY
51
0
51
15,967
0%
313
7,777
152
24,774
486
404
30
374
449,603
73%
1,113
218,805
542
659,212
1,632
TOTAL
7
Central Government by sector
Central
Government
Total
Assets
Mln €
%
PETROLEUM INDUSTRY
1
83,850
23%
CONSTRUCTION INDUSTRY
1
1,461
0%
SECTOR
MANUFACTURING INDUSTRY
Average
Total
Assets
Mln €
Operating
Revenues
Mln €
Average
Operating
Revenues
Mln €
Number of
Employees
Average
Number of
Employees
83,850
74,526
74,526
71,303
71,303
1,461
43
43
45
45
5
23,312
6%
4,662
12,560
2,512
7,610
1,522
10
19,608
5%
1,961
5,648
565
19,442
1,944
TELECOMMUNICATION INDUSTRY
2
3,659
1%
1,829
2,927
1,464
19,102
9,551
TRADE INDUSTRY
0
-
0%
-
-
-
-
-
POSTAL SERVICE INDUSTRY
1
47,886
13%
47,886
9,322
9,322
148,371
148,371
TRANSPORTATION - of which
SERVICES INDUSTRY
7
120,805
33%
17,258
16,924
2,418
133,861
19,123
HIGHWAYS INDUSTRY
0
-
0%
-
-
-
-
-
RAILWAYS INDUSTRY
3
97,934
27%
32,645
10,279
3,426
102,051
34,017
LOCAL TRANSPORT INDUSTRY
0
-
0%
-
-
-
-
-
TRANSPORTATION INFRASTRUCTURE INDUSTRY
3
17,909
5%
5,970
1,849
616
13,030
4,343
TRANSPORTATION SERVICES INDUSTRY
1
4,962
1%
4,962
4,797
4,797
18,780
18,780
3
62,315
17%
20,772
59,063
19,688
55,598
18,533
ELECTRICITY AND GAS
3
62,315
17%
20,772
59,063
-
55,598
18,533
WATER AND SEWERAGE INDUSTRY
0
-
0%
-
-
-
-
-
REFUSE SYSTEMS AND SANITARY SERVICES
0
-
0%
-
-
-
-
-
MULTIUTILITY
0
-
0%
-
-
-
-
-
30
362,896
100%
12,097
181,013
6,034
455,332
15,178
UTILITIES - of which
TOTAL
8
Local Government by sector
SECTOR
Local
Government
Total
Assets
Mln €
%
Average
Total
Assets
Mln €
Operating
Revenues
Mln €
Average
Operating
Revenues
Mln €
Number of
Employees
Average
Number of
Employees
PETROLEUM INDUSTRY
0
-
0%
-
-
-
-
-
CONSTRUCTION INDUSTRY
8
740
1%
93
180
22
495
62
MANUFACTURING INDUSTRY
9
1,358
2%
151
1,095
122
2,864
318
45
3,484
4%
77
1,780
40
17,032
378
1
343
0%
343
173
173
1,225
1,225
10
586
1%
59
634
63
2,094
209
0
-
0%
-
-
-
-
-
101
25,804
30%
255
9,959
99
95,142
942
11
5,208
6%
473
1,660
151
6,082
553
SERVICES INDUSTRY
TELECOMMUNICATION INDUSTRY
TRADE INDUSTRY
POSTAL SERVICE INDUSTRY
TRANSPORTATION - of which
HIGHWAYS INDUSTRY
RAILWAYS INDUSTRY
4
474
1%
119
137
34
1,702
426
LOCAL TRANSPORT INDUSTRY
65
11,897
14%
183
5,597
86
69,862
1,075
TRANSPORTATION INFRASTRUCTURE INDUSTRY
20
8,212
9%
411
2,538
127
17,428
871
1
12
0%
12
27
27
68
68
200
54,392
63%
272
23,971
120
85,028
425
ELECTRICITY AND GAS
41
24,868
29%
607
9,945
243
16,023
391
WATER AND SEWERAGE INDUSTRY
57
9,078
10%
159
3,389
59
15,300
268
REFUSE SYSTEMS AND SANITARY SERVICES
51
4,479
5%
88
2,861
56
28,931
567
MULTIUTILITY
51
15,967
18%
313
7,777
152
24,774
486
374
86,706
100%
232
37,792
101
203,880
545
TRANSPORTATION SERVICES INDUSTRY
UTILITIES - of which
TOTAL
9
The relevance of locally controlled GOEs
REGION
VALLE D'AOSTA
Number of GOEs
GOE Value Added
GOE Employment
3
6.74%
2.34%
LIGURIA
26
1.93%
1.95%
LOMBARDIA
78
1.51%
0.91%
LAZIO
20
1.49%
1.66%
TRENTINO ALTO ADIGE
16
1.30%
1.00%
VENETO
51
1.15%
0.77%
FRIULI VENEZIA GIULIA
14
1.15%
0.86%
PIEMONTE
25
1.03%
0.71%
EMILIA ROMAGNA
41
0.89%
0.87%
CAMPANIA
22
0.84%
0.83%
TOSCANA
48
0.75%
0.57%
UMBRIA
9
0.71%
0.66%
SICILIA
14
0.56%
0.68%
ABRUZZO
6
0.49%
0.47%
PUGLIA
12
0.48%
0.39%
MARCHE
14
0.46%
0.39%
BASILICATA
3
0.45%
0.32%
MOLISE
1
0.17%
0.07%
SARDEGNA
2
0.15%
0.15%
CALABRIA
4
0.12%
0.12%
331
1.01%
0.82%
TOTAL
10
The map of locally controlled GOEs
% of of value added
1.30% - 6.74%
0.91% - 2.34%
0.84% - 1.15%
0.71% - 0.87%
0.48% - 0.75%
0.40% - 0.68%
0.12% - 0.46%
0.07% - 0.39%
% of total employment
11
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