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For many years, public ownership has been relatively widespread in Sweden – even in sectors where, typically, private companies operate on market conditions. Recently, privatisation has become a policy priority. Empirical evidence suggests that privatisation leads to improved firm performance and higher productivity growth. However, the benefits are contingent on enhancing the degree of competition – privatisation in itself is not enough. This chapter reviews these links and considers what steps to take next. Recent financial market turmoil may require some deals to be postponed, but that aside, privatisation should continue. After completing the current first wave of sales, the way to proceed would be a combination of further privatisation and market liberalisation together with consideration of other methods for providing government support where a market failure or social objective remains.