Tag: France

In their new rules restricting state aid to troubled companies, European Union regulators could require governments to open protected markets in exchange for approving some corporate bailouts. The EU announced new guidelines yesterday aimed at forcing companies to pay back state aid. But the initiative doesn’t stop at demanding cash or the selloff of assets in return. It also gives governments the alternative of fostering more competition as a way to gain EU approval for aid to companies in distress. But experts say the rules could magnify differences within Europe over the pace at which governments permit competition in protected sectors. France and Germany, which have been outspoken about protecting their industrial giants, already accuse the European Commission of jeopardizing jobs and stability by moving too quickly to liberalize markets.