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France announces plans to nationalize struggling nuclear giant EDF

July 06, 2022

Bloomberg ($)

The French government will nationalize its financially-struggling nuclear giant Electricite de France SA  to help it ride out Europe’s worst energy crisis in a generation.

“The climate emergency requires strong, radical decisions. We need to have full control of the production and our energy future. We must ensure our sovereignty faced with the consequences of the war and the colossal challenges ahead,” Prime Minister Elisabeth Borne said during her policy speech in parliament in Paris on Wednesday. “That is why I confirm today the intention of the state to hold 100% of the capital of EDF.”

Borne didn’t provide specific details on the nationalization of EDF, which is 84%-owned by the state. President Emmanuel Macron had said during his re-election campaign in March that part of the company should be nationalized to bolster French energy independence and its net-zero ambition by building new atomic plants.

EDF shares jumped on Borne’s announcement, rising as much as 10% in Paris after having been down sharply prior to her comments.

[Francois De Beaupuy, Ania Nussbaum, and William Horobin]

More: France to Nationalize Debt-Laden EDF as Energy Crisis Mounts

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