Gazpain de France

The creeping advance of state corporatism continues, slipping tentacles into energy in France, stock markets in Sweden, oil reserves in Alberta and auto parts in Canada. On the great playing field of global business and finance, the rise of government-run corporations remains a small trend. But it is growing, ultimately threatening the market-based economic principles that drive modern capitalism.

The latest entry is France, under new President Nicolas Sarkozy, which emerged Monday as 35% shareholder in the proposed merger of Gaz de France and Suez SA. The merger sets up the government of France as the most influential — if not the controlling — shareholder of a worldwide energy giant. One of Mr. Sarkozy’s aides said the government retains the power to “give direction” to Gaz de France if the need arises.


What need would that be? The news release announcing the merger refers to GDF Suez — as the merged company will be called — as being “best placed to meet … security of energy supplies in Europe.” Which is fine for France and Europe, maybe, but what does that mean for the people of New England, where GDF Suez will own and operate a liquid natural gas (LNG) terminal near Boston and supply 20% of the New England gas market. In an energy crisis, what will Mr. Sarkozy do for the people of New England? Cancel his next New Hampshire vacation, or the next shipment of LNG?

National Post