France’s government said on Wednesday that the European Union's veto of a plan to merge French and German rail companies Alstom and Siemens into one industry giant was a mistake that would give China the edge on the world market, reports RFI.
When it was announced last year, the merger was hailed as the birth of an industry giant analogous to European plane manufacturer Airbus that would compete with a formidable Chinese rival.
But following months of investigation and a failed concession offer by the companies, European Commissioner for Competition Margrethe Vestager rejected the merger, saying it would have created a near monopoly in the European market.
French finance minister Bruno Le Maire acknowledged a veto in the hours leading up to its announcement, calling it “an economic mistake” that “will serve the interests of China”.
France’s government had lobbied for the merger as a way to compete against China’s state-backed CRRC, with Le Maire saying before a meeting with Vestager last month that a merger was “the best response to China’s growing importance in the railway sector.”