The European Commission would commit a political and economic error if it blocked the deal between rail businesses of France's Alstom and Germany's Siemens, French government spokesman Benjamin Grievaux said Wednesday
MOSCOW (Pakistan Point News / Sputnik - 16th January, 2019) The European Commission would commit a political and economic error if it blocked the deal between rail businesses of France's Alstom and Germany's Siemens, French government spokesman Benjamin Grievaux said Wednesday.EU Commissioner for Competition Margrethe Vestager has voiced her concerns about the effect this merger might have on the European rail industry. A number of national antitrust watchdogs, including Germany's Federal Cartel Office, have reportedly spoken out against the deal as well.
"The refusal of the European Commission [to allow the deal] would be an economic error, but also a political error. It would be a bad signal to send to the Europeans," Grievaux told reporters.
The government spokesman stressed that the European Union had to be able to set up its own businesses capable of competing with China's railway giant CRRC.
"We have to create industry champions of the right size, capable of countering, namely, CRRC, a Chinese railway giant, which is making ... about 200 high-speed trains per year and whose turnover is double of those of Siemens and Alstom taken together," Grievaux said.
A failure to set up such entity would "call into question the European Union's capability to pursue ambitious industry projects and an industry strategy, which allows ... our European champions to compete on equal terms with Chinese or North American industry champions," the spokesman added.
EU Economy and Financial Affairs Commissioner Pierre Moscovici said Monday that the commission would decide on the deal by February 18.
