France will on Monday unveil new measures to boost the economy, including by allowing the state to sell off its stakes in gigantic national firms — a controversial move that’s already kicking up opposition, reports Politico.
Finance minister Bruno Le Maire is due to present the long-delayed draft law, which is dubbed the “Action Plan for the Growth and Transformation of Companies” (Loi PACTE), to President Emmanuel Macron during a Cabinet meeting at the Elysée presidential palace.
The reform, which is a patchwork of 71 articles, will address long-standing gripes about running a business in Europe’s second-largest economy. These include lifting onerous obligations that kick in after a business hires its 20th employee (a 50-employee threshold will remain), and opening an online portal where firms can deal with compliance issues. It also aims to boost employee participation, by giving workers two seats on any company board with at least eight members.
But by far the most controversial aspect concerns privatization, in the midst of rolling rail strikes against plans to hive off parts of the SNCF national train operator.
According to French media, the draft law would allow the state to sell its stakes in behemoths such as Groupe ADP, the national airport operator; energy firm Engie and La Française des Jeux, the state lottery company. Proceeds from any sales would help France raise money for a €10 billion “innovation fund” announced last July.
Opposition groups are already up in arms. Marine Le Pen, head of the far-right National Rally party, said it is “insane” to try to privatize ADP, while far-left leader Jean-Luc Mélenchon vowed to nationalize all major state companies if ever his movement comes to power.