French Economy Minister Defends Foreign Sales Amidst Strategic Control Concerns

The recent sale of French companies to foreign entities has sparked debate in France, renewing concerns over economic sovereignty and the protection of strategic national assets. Economy Minister Roland Lescure addressed these issues in an interview, defending the sale of LMB Aerospace to the American Loar Group as a "demanding" transaction with stringent conditions imposed. This deal has revived controversies reminiscent of the Alstom sale to General Electric ten years ago, raising anxieties about the transfer of French technological leadership to the United States.

Lescure faced criticism from across the political spectrum, including voices from the left and far-right. Responding sharply to political opponents, he remarked, "When Sarah Knafo, Jordan Bardella, and Jean-Luc Mélenchon agree on something, they are probably talking nonsense."

Emphasizing France's rigorous regulatory framework, Lescure highlighted the strengthened control over foreign investments under the Pacte law. This was demonstrated recently when the Ministry of Economy's authority, Bercy, vetoed the acquisition of Eutelsat's antennas by the Swedish firm EQT, citing the company's strategic importance in both civilian and military communications.

Regarding the sale of Biogaran to BC Partners, Lescure confirmed that the transaction was regulated with specific safeguards. These include maintaining a strategic stock, guaranteeing job preservation, and the French state taking an equity stake through Bpifrance, reinforcing state involvement in critical economic sectors.

These interventions illustrate the French government's intent to balance openness to foreign investment with safeguarding national economic sovereignty and strategic interests. The government's proactive stance seeks to prevent unchecked acquisitions in sectors vital for France's security and technological future, while allowing foreign investment under strict scrutiny and regulatory conditions.