Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
Share a link:
https://casecent.re/p/20807
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Abstract
As a member of the European Union, France had to follow European Competition Commission (ECC) rules and regulations regarding state aid. However France has been violating those provisions, sometimes openly and sometimes covertly. While the politicians seem to believe in free trade and competition, they resort to protectionist policies when their own industries are involved. These protectionist policies and state aid do not seem to serve the very purpose they are intended for. This case discusses the causes, which led to the bankruptcy of France Telecom, Credit Lyonnais, Bull and Alstom. It also discusses how the French government tried to save these companies and how ECC rules were violated. It briefly discusses whether state aid is useful or not.
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Abstract
As a member of the European Union, France had to follow European Competition Commission (ECC) rules and regulations regarding state aid. However France has been violating those provisions, sometimes openly and sometimes covertly. While the politicians seem to believe in free trade and competition, they resort to protectionist policies when their own industries are involved. These protectionist policies and state aid do not seem to serve the very purpose they are intended for. This case discusses the causes, which led to the bankruptcy of France Telecom, Credit Lyonnais, Bull and Alstom. It also discusses how the French government tried to save these companies and how ECC rules were violated. It briefly discusses whether state aid is useful or not.