Diplomatic conflict? Netherlands and France argue over Air France shares
The Ministry of Finance of the Netherlands on February 26, 2019, announced the acquisition of a large block of shares of the world-famous airline Air France. As reported on the official website of the Ministry, the state share of the Netherlands in the company now stands at 12.68%. However, this purchase can seriously lead to a diplomatic conflict. The French authorities havenegatively reacted to this deal. What is the cause of dissatisfaction of the French, and what could the purchase of Air France shares in the Netherlands result in?
Why is France unhappy with the purchasing of Air France shares in Holland?
The relationship between France and the Netherlands is close to a diplomatic conflict over the recent acquisition of Air France shares. Both countries declare their intention to protect their national interests.
In a statement about the purchasing of securities, representatives of the Ministry of Finance of the Netherlands stated that the country wants to receive the same share of the air carrier as France. Thus, the authorities want to be directly involved in making key decisions in the company. The head of the Ministry of Finance of the Netherlands Wopke Hoekstra notes that the impact on the future of Air France is an important step towards the interests of citizens. Hoekstraalso said that the work on the acquisition deal began on February 20, and on February 26 the parties agreed on all the nuances.
France reacted to such actionssharply as it was expected. The head of the French Ministry of Finance, Bruno Le Maire, called the Dutch acquisition of Air France securities an incomprehensible and unexpected decision. Le Maire also said that a meeting was scheduled for March 1st with counterpart Wopke Hoekstra from the Netherlands, which should solve many open issues.
Do not stay away from the conflict and Emmanuel Macron. The French President, speaking jointly with German Chancellor Angela Merkel, made a statement regarding the actions of Amsterdam. Macron stated that the Dutch government did not provide France with any information about its intentions. The President demanded from the Ministry of Finance of the Netherlands to respond to the current situation.
The founding council of Air France-KLM also commented on the acquisition of shares by Holland. Representatives noted that no one from the Ministry of Finance of the Netherlands had contacted them, and had not consulted them. The company stressed that the founders will put the situation under special control and will monitor the actions of the government of the country.
The meeting between Wopke Hoekstra and Bruno Le Maire on March 1 nevertheless took place, and the Netherlands explained their behavior. As it turned out, the country’s Ministry of Finance had no right to disclose any details about the conduct of the transaction. This is prohibited by exchange legislation in both France and the Netherlands. Hoekstrastated that countries should turn this page and move on, taking all the necessary measures for the development of Air France.
In turn, Bruno Le Maire said that he hoped for long and productive cooperation with the Netherlands. However, the standard statements remained a mystery, what is the real goal of increasing the state share of the Netherlands in Air France-KLM. Societe General experts are confident that it was necessary to expand their presence on the board of directors.
