This paper focuses on the public policy objectives (PPOs) assigned to state-owned enterprises (SOEs) and reviews national practices relative to the recommendations of the OECD Guidelines on Corporate Governance of State‑Owned Enterprises (the SOE Guidelines). It identifies several recurring trends and best practices on how countries articulate, implement and monitor PPOs. The paper also seeks to clarify the conceptual and practical distinction between PPOs and public service obligations (PSOs), and to support the development of robust governance frameworks that appropriately reflect the different nature, scope, and implications of each.
The topic emerged as a priority during the 2024 revision of the SOE Guidelines, reflecting its growing importance for improving transparency, strengthening accountability and supporting competitive neutrality. Recognising these goals, the OECD Working Party on State Ownership and Privatisation Practices (WPSOPP) agreed to undertake analytical work to deepen the evidence base and facilitate the implementation of the SOE Guidelines. The SOE Guidelines provide a global benchmark for the articulation, implementation, monitoring, and disclosure of PPOs, including guidance on the appropriate use of their financing. They also address PSOs, notably with regard to the definition of obligations, contractual arrangements, and the use of transparent and proportionate compensation mechanisms.
Drawing on policy practices from 26 countries, namely Australia, Austria, Azerbaijan, Bulgaria, Colombia, Costa Rica, Croatia, Czechia, Estonia, Finland, Germany, Greece, Iceland, Italy, Korea, Latvia, Lithuania, the Netherlands, Norway, Peru, Slovakia, Slovenia, Spain, Sweden, Switzerland and Ukraine, this report examines how PPOs and PSOs are articulated and implemented within diverse national frameworks. Country practices were derived from a questionnaire-based survey focusing on the five largest central SOEs engaged in economic activities and tasked with delivering PPOs and/or PSOs (hereafter referred to as the OECD Survey on PPOs in SOEs). The survey was conducted from December 2024 through April 2026 and was supplemented with follow-up interviews and desk research. Building on this comparative analysis, the report distils key findings drawing on country practices and recommendations set out in the Guidelines.
This report was developed by the Capital Markets and Financial Institutions Division of the OECD Directorate for Financial and Enterprise Affairs. It was prepared by Karoline Irmscher and Emeline Denis, under the supervision of Sara Sultan, Head of the State-Owned Enterprise Unit, and Serdar Çelik, Head of Division.