Macron prefers to give away billions in the stock market rather than invest

Wed 20.07.2022 — The French are paying!

french electricityThe French energy sector is horribly wrong. Of the 56 French nuclear power plants, 29 are shut down (maintenance or accident), and 4 are operating only in exceptional cases due to abnormal heat, which forces them to release much more water into the environment. ordinary. What to do, the answer seems obvious. We must build new means of generating electricity in France. Immediately. The sooner the better, next winter we may not have enough. But what the government does is announce the nationalization of the EDF. That is, instead of investing, he prefers to give money to shareholders, individuals and legal entities who have acquired EDF shares and who can resell them to the state, making a juicy profit. Recall that the government first caused the share price to fall when it forced EDF to sell more electricity at low prices to its competitors on January 13, 2022. In the following days, EDF shares lost a quarter of their value, falling below 8 euros. Today the government offers to buy these shares for 12 euros. Which brings 50% profit in 6 months. Not bad !

The tragedy is that this nationalization will be absolutely useless, since the state already completely controls EDF, being an ultra-majority shareholder with 84% of the shares. So the French are going to give ten billion to the fellows, and then they will have to invest tens of billions more to finally build new power generation facilities. Some will explain that EDF is already in debt and that nationalization is the only solution. But how could EDF ever make a profit with all the economic and regulatory restrictions placed on it by the state? That the government confirms that it will leave the EDF alone, free of its choice. This would give confidence to real investors, and instead of spending money that France does not have, the state could sell its 84% ​​stake in EDF. This would reduce the country’s debt, and the French would have nothing to pay. But Macron prefers to make them pay, which will be around 250 euros per household.

Laurent J. Masson

Are you willing to pay for the nationalization of EDF?

Section(s) and keyword(s): not a constructor; fuel and energy