Definition: Equity stakes

National accounts

Such arrangements involve the creation of a new unit (a “joint-venture”) in which both government and non-government partners have equity stakes in a company managing a given infrastructure. ESA95 rules, as supplemented by the Manual on government deficit and
debt, give quite explicit provisions, notably as regards the treatment of flows between government and this unit. A “pure” joint-venture with a strict equality in equity stakes should normally be considered as a public corporation if government is assumed to exercise a
control over the general policy of the unit, which is generally the case.
Source:
Eurostat, "Long term contracts between government units and non- government partners (Public-private-partnerships)"; (2004 edition), Office for Official Publications of the European Communities, 2004, Luxembourg
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