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France’s next President to face costly propping up of the nuclear industry

AREVA EDF crumblingFrance’s Next President May Face $3 Billion Nuclear Hangover, text-relevantBloomberg by Francois De BeaupuyFebruary 4, 2017, 

  • Not enough left in the kitty to bail out both EDF and Areva
  • Sale of assets from phone company to Renault may be considered

Whoever succeeds Francois Hollande as France’s president may find one of their first tasks in office will be selling off some of the nation’s prized assets to prop up the state’s nuclear industry.

That’s because the government is as much as 3 billion euros ($3.2 billion) short of the 7.5 billion euros it has said it needs this year to fix the financial problems of Areva SA and Electricite de France SA, said two government officials with direct knowledge of the matter. Hollande will try to find an answer before he leaves office in June, one of the people said. If he can’t, his successor must decide how to plug the gap, said the other person.

France is preparing to rescue its nuclear industry after EDF was weakened by falling European power prices and Areva lost billions on a long-delayed project in Finland. The president must either increase the national debt or weigh politically sensitive privatizations of holdings in anything from automakers such as Renault SA to the former phone monopoly — a tall order with the first round of presidential elections just three months away…….

While the government has enough in its privatization account for the 3 billion-euro stimulus it plans for EDF this quarter, it remains almost 3 billion euros short of the 4.5 billion euros it wants to help its near-bankrupt reactor maker, Areva, complete its restructuring and meet debt repayments this year, said the officials. Areva shareholders on Friday voted in favor of a 5 billion-euro state-backed bailout, which includes 500 million euros from Japanese investors………https://www.bloomberg.com/news/articles/2017-02-03/france-s-next-president-said-to-face-3-billion-nuclear-hangover

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February 4, 2017 - Posted by | business and costs, France, politics

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