French President Emmanuel Macron has given his blessing to the nationalization of a shipyard in western France to prevent an Italian company taking control, a move seemingly at odds with his presidential campaign message of economic liberalism and EU unity.
The shipbuilder, STX France, had been set to be taken over by Fincantieri. The Italian firm agreed in May to pay 79.5 million euros for two-thirds of STX France, but the Macron administration tried to renegotiate a 50-50 split.
When Fincantieri rejected the amended proposal, the French government exercised its right to buy out existing shareholders and take control.
Economy Minister Bruno Le Maire said the decision had been made in order to protect the jobs of French workers and a key strategic interest – the Saint-Nazaire shipyard is the only facility in France large enough to build aircraft carriers.
Le Maire insisted that nationalization was a temporary solution.
Applause and condemnation
The French president campaigned on an anti-protectionist, pro-EU cooperation platform, so his approval of the nationalization of STX France has raised eyebrows at home and abroad.
The Italian government reacted with anger, denouncing the decision as "grave and incomprehensible" according to Reuters.
Macron has pursued a pro-EU agenda, but the nationalization of STX France has angered Italy. /Xinhua Photo
"Nationalism and protectionism are not an acceptable basis for establishing relations between two great European countries," Italian Economy Minister Pier Carlo Padoan and Industry Minister Carlo Calenda said in a joint statement. "To work on joint projects you need reciprocal trust and respect."
The ministers also questioned the rationale for the nationalization. STX France was put up for sale after the collapse of its South Korean parent, STX. If a South Korean company was allowed a majority stake, they asked, why not an Italian firm?
The move raises questions about overseas investment and the role of the private sector, given Macron's stated aim of making France a more business-friendly country.
The decision did receive support from unlikely bedfellows, with both the far-right Front National party and far-left leader Jean-Luc Melenchon praising the nationalization.
Political interests
Macron's approval ratings have slid in recent weeks as the realities of his plans to rebalance the French economy have been detailed in policy moves.
Macron said out his vision for radical reform in a speech to both houses of parliament held in Paris on July 3, 2017. /Xinhua Photo
The decision to allow the nationalization of the shipyard is politically expedient, Bloomberg suggests, given that it helps address three issues that have dogged the 39-year-old: dropping poll numbers, an enduring populist sentiment in France, and a labor market reform program that is expected to provoke protests from unions.
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