3、~oujke[stiswthriva..>>Yalm.rmev(145)JEL(Classification):D6,F15,G15,H82,J64,L32KeyWords:EconomicWelfareEconomicIntegrationInternationalFinancialMarketsGovernmentalPropertyUnemploymentPublicEnterprises26October2011Privati
4、zationanditsSignificanceonEuropeanFinancialMarketsanditsConsequenceonSocialWelfareAbstractEconomics/FinanceDepartment,TheArthurJ.KaniaSchoolofManagement,UniversityofScranton,Scranton,PA18510,U.S.A.Apreviousversionofthispaperpresentedatthe2009FinancialServicesSymposiumoftheFinan
5、cialServicesInstituteatSt.John’sUniversity,101MurrayStreet,NewYorkCity,N.Y.,onSeptember4,2009.IwouldliketoacknowledgetheassistanceprovidedbyJatinkumarAhir,MarioMigliori,BrandonDragone,andKevinMcLaughlin.Financialsupport(professionaltravelexpenses,submissionfees,etc.)wasprovided
6、byProvost’sOffice(FRAPFundsandHenryGeorgeFunds).Theusualdisclaimerapplies.Then,allremainingerrorsaremine.Theobjectiveofthispaperistopresentanddiscusstheprosandconsofprivatization(transferringtheownershipandmanagementofstate-ownedenterprisestoprivatefirms)intheEuropeanUnionandit
7、seffectontheeconomy,financialmarkets,employment,nationalwealth,andsocialwelfare.Privatizationmightincreaseefficiency,productivity,andliquidityinthefinancialmarkets,butatthesametime,itcausesunemployment,dependencyonforeigncapitalandmultinationalfirms,andtheworstofallthecountrylo
8、sesitsnationalwealthandthesocialwelfareisdeclining.Governmentshavetoincreaseproductivityandefficiencyofthepublicsectorandkeepthestate-ownedenterprises,whichprovidenationalsecurity,safety,andotherpublicservices,aspublicones.Nationalizationhasprovedrecently,withthecurrentfinancia
9、lcrisis,whichhasbeencreatedbytheuncontrolledprivatefir