It is an opinion that sounds as a reminder. For the Court of auditors, the mixed economy companies (SEM), employing 50,000 employees and weighing nearly 12 billion euros in turnover, need to be better regulated by the law. Created after the First world War, this legal form obeys the same rules as limited companies in spite of capital mainly from public sources, to the tune of 79 % on average in 2018. Widely used by local authorities to fulfil their public service missions (71 % of the 1300 local public enterprises are of SHEM), they now represent a danger to the finances of their shareholders. According to the judges ‘ financial, “the dynamics of development of the SEM was far from their purpose of origin and has led them to intervene increasingly as private operators”. As the legislature had not strictly defined the corporate purpose of these companies, 67 % stated that they today exercise of ancillary activities to their original purpose.
“, with the potential financial risks”
However, for the Court of auditors, this evolution has several disadvantages. Because who says job says, in effect, often subsidiaries “, with the potential financial risks for the shareholders. As they had done in 2017, the judges financial stress that the pluri-activity, in a society that globalizes the resources, allows for compensation between the branches beneficiaries and deficit, and that it can be done to the detriment of users. The report, which also relies on a judgment of the Council of State of November 2018, recommends better supervision of the activity of the SEM.
The Court of auditors considers, finally, that local authorities should instead give priority to the use of SPL (the society of local government) and Semop (mixed-economy Company in single transaction), two other forms of local public agency compliant with the european law that reduce the legal risks.
