French ‘privatisations’ as Macron rethinks state role

PARIS, June 14, (AFP): The French government has announced the first major privatisations under President Emmanuel Macron which will be used to finance a new innovation fund and pay down the country's public debt.

Under a draft law unveiled late Tuesday, the government plans to lower its shareholdings in airport operator Aeroports de Paris, gaming monopoly Francaise des Jeux and energy group Engie by an undisclosed amount.

Economy Minister Bruno Le Maire said the state holdings were worth an estimated 15 billion euros ($17.6 billion) and most of the proceeds of the sales will go towards a state fund for promoting innovative technologies.

During his presidential campaign last year, Macron promised public investment of $10 billion in new disruptive technologies such as artificial intelligence and robotisation.

"We are moving from a management approach to an approach of investing in the future," Le Maire told Les Echos newspaper in an interview published Wednesday.

Macron, a 40-year-old former investment banker, has allowed strategic assets once considered too sensitive to sell to fall into private – and foreign – hands.

The maker of France's famed highspeed trains, Alstom, is merging with Germany's Siemens company, with the latter set to emerge as the dominant shareholder.

Italian firm Fincantieri has also taken control over major shipyards in western France, albeit with strong state oversight.

"It is about re-thinking the role of the French state in the economy," Le Maire added in his interview.

"The state's influence can be exerted in other ways than shareholdings," he added, citing "increased regulation" as an alternative.

Over the last 20 years, major French firms such as France Telecom, bank Credit Lyonnais, airline Air France and motorway operators have been progressively sold off by successive governments.