Dissolves two public industrial institutes and creates two new entities

Automatic summary, not yet reviewed

1. It dissolves the National Institute of Industry (Instituto Nacional de Industria) and the National Institute of Hydrocarbons (Instituto Nacional de Hidrocarburos), which until then held public stakes in industrial and hydrocarbon companies.
2. It creates the State Industrial Agency (Agencia Industrial del Estado), attached to the Ministry of Industry and Energy, to manage companies subject to industrial restructuring or conversion plans. It receives the public stakes listed in Annex I of the law.
3. It creates the State Industrial Holdings Company (Sociedad Estatal de Participaciones Industriales), which will manage public stakes in companies that compete in free markets, listed in Annex II. One of its goals is to pay off the debt generated by the National Institute of Industry.
4. The Agency may not take on debt, guarantee loans, or lend money to its companies. The State Holdings Company, by contrast, may carry out financial operations and borrow, subject to the limits set each year by the budget law.
5. Companies under the Agency may be transferred to the State Holdings Company once their restructuring plans end and they have made profits in the last three fiscal years, with net worth equal to or greater than their share capital.
6. Both entities must report annually to the Cortes Generales (Spanish Parliament) and appear before committees of the Congress of Deputies (Congreso de los Diputados) and the Senate when asked. They must also send the same information that listed companies give to the National Securities Market Commission.

Who it affects

• Public industrial and hydrocarbon companies, which come under the new Agency or the new State Holdings Company.: Their ownership and management regime change.
• Workers of the two dissolved institutes and of the new entities.: Their employment relationship is governed by private law, with severance pay capped at legal maximums.
• The Ministry of Industry and Energy.: It oversees the effectiveness of both new entities and appoints their board members.
• The Cortes Generales (Spanish Parliament).: It receives annual information and can require the chairs of both entities to appear before its committees.

Words worth knowing

Entidad de derecho público (public law entity)

An organization created by the State with its own legal personality, but which is not a traditional public administration.

Reconversión o reestructuración industrial (industrial conversion or restructuring)

Plans to reorganize and make viable industrial companies in crisis.

Texto refundido de la Ley General Presupuestaria (consolidated text of the General Budget Law)

The rulebook on how the State's budgets are prepared and controlled.

Tributación consolidada (consolidated taxation)

A corporate tax regime under which a group of companies is taxed as a single one.

Fedatarios públicos (public notaries)

People with public faith, such as notaries, who certify certain acts and charge fees for it.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries