PÉCS RENATIONALIZES

On the level of political statements the Socialist-liberal coalition seems to be an unconditional adherent of privatization but some of its politicians want renationalization in practice. In Pécs even at present there are talks going on with the French owners about the repurchase of the waterworks.

The municipal self-government wants to repurchase the minority property rights from the Suez group of companies. Pécs sold 48 pc of the dividends of the waterworks in 1995 to the predecessor in title for HUF 350 million. Later, however, the municipal assembly authorized the leaders of Pécs to start negotiations with the French owners because they found the services of the holding too expensive. The intention of repurchase was explained then by István Juhász, chairman of the economic committee that a property fully in self-government management could expect subsidies from several EU sources. István Juhász said the talks were going on with the French either about the repurchase of the dividends or about sharing the exceedingly high profits while Csaba Nagy (Fidesz) claims there is a very severe contract protecting the interests of the French partner. He said the real problem was not the high profit but the fact that this profit left the country. Mayor László Toller has repurchased in a similar way the parcel of shares from Biokom Ltd owned by the French CGE group which dealt with communal waste management in the counties of Baranya, Tolna, and Somogy. The success of this unprecedented renationalization probably encourages Pécs to attempt this move in the case of the waterworks, too.

Translated by Péter Szentmihályi Szabó