According to Associated Press report on July 7, French Prime Minister Elisabeth Borne announced on Wednesday that the French government plans to nationalize 100% of the debt-ridden power giant Electricite de France (EDF) to give The reason given is that the conflict between Russia and Ukraine has exacerbated energy challenges.
Source: Report screenshot
The report pointed out that the French government now holds nearly 84% of the shares of EDF, one of the largest power producers in the world. After the news was announced, EDF's stock price, which has recently been hit by the shutdown of its nuclear reactor and a series of other problems, rose.
In a policy speech to the French National Assembly on Wednesday, Bornay set out his government's priorities, saying "we must have full control over our electricity production and its performance. In the face of the consequences of the Russia-Ukraine conflict and In the face of the great challenges ahead, we must ensure our sovereignty... That is why I confirm to you that the state intends to own 100% of the capital of EDF company."
reported that Borne will state-owned this company. The decision was described as part of France's strategy to gain "energy sovereignty" and "build a stronger France in a more independent Europe." She said: "We can no longer rely on Russian gas and oil. We will gain sovereignty thanks to nuclear power and renewable energy."
reported that France's National Audit Office released a report on Tuesday urging the government to change the rules regarding EDF and power market policies, calling the current situation “neither intolerable nor controllable.” The report said that France failed to comply with EU policies and maintain affordable prices for consumers while opening up the electricity market to competition.
According to British Sky News, French President Macron stated in his presidential campaign manifesto in March that he planned to increase the government's stake in EDF. "The state needs to take ownership of several aspects of the energy sector. We need to take ownership of several industry players," he wrote at the time.
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