Privatisation in Spain

Privatisation differs according to the formula used, the assets that are transferred, the restrictions which are set up for buyers or the resulting potential for change in the regulatory framework where the privatised firm is to operate. Therefore, an interpretation of economic policy regarding privatisation should examine the details of the operations to identify what final goals, priorities and economic transmission mechanisms are defined. In this article, the case of Spain is used to show the various economic policy objectives (consolidating the productive system, reducing the public sector's financial requirements, or directly rebalancing the private and public sectors) that guide decisions concerning privatisation.