Business Case Studies, Govenrment and Business Environment Case Study, French,Bailouts

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Case Title:

French Bailouts

Publication Year : 2003

Authors: Anand C Prasad & G Srikanth

Industry: Telecommunications

Region:France

Case Code: GBE0002

Teaching Note: Not Available

Structured Assignment: Not Available

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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.

Pedagogical Objectives:

  • To discuss the causes, which led to the bankruptcy of France Telecom, Credit Lyonnais, Bull and Alstom
  • To discuss how the French government tried to save these companies and how ECC rules were violated
  • To discuss whether the bailout by the government is justified.

Keywords : French bailouts,business environment case study, Bailout, State aid, European Competition Commission, European Union, France Telecom, Credit Lyonnais,Government and Business Environment Case Study,Groupe Bull, Alstom, Enterprise de Recherches et d'Activities Petrolieres, Bankruptcy, Antitrust, Competition, State grants, European Commission

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