The Janus Face of Europeanisation: Explaining Cross-Sectoral Differences in Public Utilities

Abstract

Although policymakers have sought to liberalise network-based utilities, a more detailed look at privatisation pathways reveals remarkable sector-specific differences. This article examines why efforts to privatise public utilities have differed so greatly in the telecommunications, postal, and railway sectors. By estimating probit models, it is demonstrated that firm characteristics and sector-specific EU integration account for cross-sectoral differences in privatisation. More specifically, governments dispose of the most efficient firms first to maximise revenues from privatisation sales with low political costs. Regulations at the European level pushed governments to privatise their national postal providers, while privatisation in the telecommunications sector is a global trend. In the railway sector, exceptional clauses and regulations have decelerated privatisation.