Government oversight of existing SOEs

The primary goal of such involvement is the furtherance
of the public interest rather than the generation of profits. The government is required to end its
ownership stake in a private entity if government tasks change or technological progress
provides more effective alternatives, though the government notes that certain areas, particularly
science and culture, remain permanent core government obligations.

German SOEs are subject
to the same taxes and the same value added tax rebate policies as their private sector competitors.
There are no laws or rules that seek to ensure a primary or leading role for SOEs in certain
sectors/industries. Private enterprises have the same access to financing as SOEs, including
access to state-owned banks such as KfW.

Under the law, SOEs are subject to hard budget constraints which are generally enforced.