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You have a point, but my objections to partial privatisation are as follows:

  • even if it is only a few %, privatisation makes it necessary for the company to focus on profitability. As discussed above, the easiest way to do that is to press on the workers. There are certainly areas of EDF where efficiency could be improved, but hte fact is that if you change one part of the overall equilibrium, you lose other thigns as well. If the workforce is squeezed, they will be less motivated and may end up caring less about quality and reliability and have less initiative where needed.

  • this point is not applicable in the current European regulatory framework, but my position is that EDF should not only be State owned, but also benefit from a State guarantee to borrow money at the interest rates offered to the soveeign rating - in order to be able to invest over the very long term and reap the formidable cost savings of compounded lower interest rates.


In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Mon Sep 5th, 2005 at 08:58:55 AM EST
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