In a speech addressing the state of the EU's economy and competitiveness, Internal Market Commissioner Charlie McCreevy has expressed concerns about France's plans to protect a number of industry sectors against takeover bids from foreign companies, saying that he could "envisage difficulties" with the initiative (see EurActiv 1 September 2005).
"Shielding industries from the forces of competition is the surest way to guarantee their decline. As Commissioner for the Internal Market I want a vibrant, open, competitive market place," he said on 3 September in Cernobbio, Italy. "I won't pass judgement [on the French proposals] until I see the details. But I will vigorously pursue any such measures that are contrary to EU law."
According to EU legislation, Member States are entitled to protect any so-called 'strategic' areas that are vital for the country's security. However, critics have claimed that the plans of the French government to protect industry sectors such as biotechnology and casino gambling may go way beyond this definition. The Commission will have to carefully examine the details of the initiative to assess whether they are compatible with EU law.
