The French government is to implement anti-foreign take over laws to protect 10 key industries vital to national security. The government has vowed to
defend French food producer Danone from a take over bid from Pepsi Co. Other industries included in the anti-foreign take over legislation include
arms manufacture, encryption, biotechnology, data security, casinos and antidote production. According to EU Internal Market Commissioner Charlie
McCreevy these new French laws are against EU law and he will "vigorously pursue" the matter.
PARIS - French plans to vet foreign takeovers in newly defined "strategic" sectors are coming under fire from a growing number of critics —
including companies the government had vowed to protect.
A soon-to-be-published decree, touted by ministers after rumors of a PepsiCo Inc. bid for French food company Danone SA provoked a political outcry in
July, would give the government a veto over takeovers in 10 industries deemed sensitive to national security.
Sectors on the list, already confirmed by the Finance Ministry, include several over which most states retain tight control, such as arms
manufacturing and encryption.
But the decree also covers companies with activities in biotechnology, data security, casinos and antidote production — fueling concern that it
could lead to a broader kind of protectionism.
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France is becoming increasingly socialist lately, more so than usual. Couple this with the demands that oil companies pass on their record profits in
the form of price drops and you have an obvious socialist agenda appearing. Although its no different to Unocal's American protection from being
gobbled up by a Chinese conglomerate. I wonder, why did British Petroleum go to such lengths to hide the fact that they were bought out by American
firm Amoco? Would Britain of looked kindly on that take over? How about if Haliburton was facing a hostile take over from a Russian or Chinese
I happen to see this new law to be a good thing as socialism can be worked into a morally sound version of capitalism, if managed correctly. But thats
my personal opinion.
I hope this isnt just a cynical political game to bolster Chirac's flagging domestic support. Otherwise good move France! Atleast they are opposing
foreign corporations pillaging their citizens, better to keep the money in the pockets of French corporations I suppose. Lesser of two evils etc.
Related AboveTopSecret.com Discussion Threads:
NEWS: France Threatens Oil Companies With "Special Taxes" If Prices Dont Fall
[edit on 12/9/05 by subz]