Brussels, 08/09/2006 (Agence Europe) - The European Commission has confirmed that it has accepted the fact that the French state will have a “golden share” in the group that emerges from the merger between Suez and Gaz de France, if the merger is cleared. The merger between the two groups is on the condition that the preliminary privatisation operation reduces the state's share in GDF from 80% to 34%. Having a “golden share” will not be contrary to Community law, the Commissioner underlines but which also points out that it does not see a situation that allows the state special rights in the future group, as being very positive. According to AFP, in a letter sent to the French finance minister, Thierry Breton, the European Commissioner for the internal market Charlie McCreevy said that the “current state of the project does not contain any contentious elements that lead the Commission into opening an infringement procedure”. Nevertheless, the Commissioner indicated that his “deep conviction was that special rights that governments allocate themselves in order to control private companies, create obstacles to direct investment”. He called for precisions from France, especially insofar as it specifies assets that will be affected by the “golden share” and that it explains how to “protect the essential interests of France” rather than simply “national interests”.
France still needs to obtain the green light from the European competition authorities, which is not a foregone conclusion. The European Commission's DG responsible did, in fact, launch a probe in June, which is expected to end on 25 October. The deadline is likely to be extended till 17 November so that the Commission can test the remedies that the two groups are expected to submit to it by 20 September.