The BRCSAS newsletter dated February 21. intended to explore the risk of mixing public and private interests. In its February 22. Special Report the Economist introduces in turn the issue of relationships between the State and the businesses …
Should they be “Ami Amies” or “Ami Ennemies” ?
The banking industry has been bailed out in 2009 and in 2010 at the expense of the taxpayer, something that clearly reflects a relationship of “Ami- Ennemi” .
The warm welcome of foreign businessmen by the French government in February suggests an “Ami Ami” relationship.
If the choice of the State is to base its economic growth upon large international groups, the risk is to quickly face private monopolies that are the natural consequence of global business strategic growth.
Well aware of that risk, the French gaullist gouvernment acted in the sixties so that infrastructure, education and regulation be at the service of large state companies – EDF, SNCF, Banks – with the expectation that such state companies would be the driver of the growth for the rest of the economy.
If large private groups are given to much leeway, they could quite easily challenge the government of the Republic with their own governance and influence the regulatory framework so to obtain extra benefits.
Meanwhile, the taxpayer will have to pay the bill and the small businesses will have to cope with unfair competition and with unfriendly regulations.
Dura lex …
Dominique F. Pasquier