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well, State ownership is not a factor, as the EU was not allowed to decide on forms of ownership, but State-owned firms are supposed to finance themselves without a State guarantee, explicit or implicit.

That applied to EDF but also to the Landesbanken, whose business model (borrow cheap and lend cheap to local companies) was broken by the EU to comply with the "competition" demands of the London-based (and US-owned) investment banks. So they had to borrow expensive, and turned to crazy stuff like MBS to earn the equivalent revenue, while their past clients went to the investment banks for loans (and get cut off at times of crisis...)

Wind power

by Jerome a Paris (etg@eurotrib.com) on Thu Jul 19th, 2012 at 12:37:25 PM EST
[ Parent ]
I wouldn't put all the blame on Anglo banks. While the prime beneficents are the rentiers in the financial sector these Competition rules favor all well established players.
by generic on Thu Jul 19th, 2012 at 01:14:19 PM EST
[ Parent ]


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