Brussels, 06/09/2002 (Agence Europe) - While the France Telecom telecommunications company, which has a debt of EUR 70 billion, could be supported by the French government, which holds a 55% stake in the enterprise, Michael Tscherny, Spokesperson for Commissioner Monti responsible for competition, replied to the question of whether such aid complied with European rules. He said that, as far as government loans are concerned, there is no question of State aid and competition. Governments may offer mixed or private companies loans if they are proposed at a commercial rate. If they are not, it cannot be ruled out that the Commission may wish to examine this dossier. What counts are the conditions of guarantee offered by the government.
Given the collapse of France Telecom securities, the French government had announced this week, through the voice of Economic and Finance Minister Francis Mer, that the State, which is a majority shareholder of France Telecom, would behave as a well-informed investor towards the company. Also, if France Telecom were to have refinancing problems, adequate support measures would be taken. It did not specify, however, how it could help the group. Among the possible scenarios, the State could guarantee future France Telecom loans or the issue of convertible bonds. At any rate France should take into account the requirements of European legislation on State aid as the Commission will not agree to any measure that might appear as disguised State aid for a company in a competitive sector.