Posted on 04/14/2006 10:10:29 AM PDT by SmithL
PARIS, France -- The European Union has often struggled to persuade governments to look beyond narrow national interests, as it inches toward its goal of becoming a vast free market. But now an unabashedly populist ideal is taking root among governments: economic patriotism.
A series of government moves to block foreign takeovers is fueling concern that a surge in protectionism could threaten the EU's economic progress, just when competition from Asia is making liberalization more urgent than ever.
Several countries have intervened recently to protect their corporate "champions" from rivals in other European Union states. Coming less than a year after voters in France and the Netherlands rejected a draft EU constitution, the trend has raised alarm about the future of Europe's single market and the enforcement of rules underpinning it.
"The unraveling of Europe, even as an economic actor, is unfortunately a possible scenario," said Dominique Moisi, a special adviser at IFRI, the French Institute for International Relations.
With its avowed policy of "patriotisme economique," France has attracted much of the blame for the outbreak of inwardness.
In barely three months, prime minister Dominique de Villepin's government has engaged in an frenzy of protectionist activity, including:
_ Decreeing its right to veto cross-border deals in 11 "strategic" sectors.
_ Opposing a takeover bid by Netherlands-based Mittal Steel for Luxembourg-based steelmaker Arcelor, which employs nearly 30,000 people in France.
_ Waving through a merger between French utilities Gaz de France and Suez to discourage a bid for the latter by Italy's Enel.
_ Rushing in legislation allowing French companies to repel hostile bidders by diluting their capital.
(Excerpt) Read more at sfgate.com ...
Good. The death of free traitin' is a very good thing.
May the EU die an ignominious death, and serve as fair-warning to would-be imitators.
ping for later
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