here in Austria we had several companies that were state owned. Problem was, that then there is politics coming into play and hiring is not about business facts but politics.
This resulted in highly inefficient companies as the objectives did not align any more...
Exactly. Also, firing established people who stop contributing is impossible (they'll plead "it's political"), and hiring new people for good wages is impossible too because "that's not according to our tables of wages" (both of these problems are not theoretical, every state company here today has them).
