France to nationalise strategic shipyard after standoff with Italy
PARIS: The French government, sparking a row with Italy, announced plans to temporarily nationalise the country’s biggest shipyard after failing to agree a deal with a prospective Italian owner.
After Economy Minister Bruno Le Maire announced the decision, saying it sought to protect France’s “strategic interests,” the Italian government expressed outrage, saying the move was “inexplicable”.
In a later development, an aide to Emmanuel Macron said the French president had called Italian Prime Minister Paolo Gentiloni to “clear away any misinterpretation” of France’s actions.
Macron said the nationalisation was simply a “transitional decision” and France “obviously wishes the deal to include a major role” for the Italian suitor, the state-owned shipbuilder Fincantieri, the source said.
“Mr Gentiloni was much placated” by the conversation, the source added. Le Maire announced France had taken the decision to exercise the state’s right of ‘preemption’ on STX.
He insisted it was just a ‘temporary’ move while France continued negotiations with Italy on shared ownership of the firm.
The shipyard, located in the western port of Saint-Nazaire, has turned out some of the world’s biggest cruise liners and also builds warships.
The facility has unique knowhow that should not be lost to abroad, Le Maire argued.
“We want to assure the workers, but also the region, its customers and sub-contractors and all the French people that the yard’s exceptional skills will remain in France,” he said.
Le Maire estimated the cost of the operation to the state at “around 80 million euros” (US$93 million) and said it would be recouped when Paris reached an agreement with Fincantieri on splitting ownership.
France has been pushing for a 50-50 split between Fincantieri and STX’s French shareholders – a proposal rebuffed by Italy.
In April, then French president Francois Hollande had approved the sale of the shipyard by South Korea’s STX Shipbuilding.
The deal gave Fincantieri a controlling stake in the facility in return for which Fincantieri gave guarantees on jobs.
But on taking office in May centrist Macron said he wanted to renegotiate the deal.
In a joint statement Thursday, Italy’s finance and economic development ministers said: “We consider that the French government’s decision not to honour agreements is serious and inexplicable.” — AFP