In the News

French government to fully nationalise EDF energy

Graham Watson

19th July 2022

It's interesting to see how the French government are looking to resolve the issue of energy security.

In a move likely to cost around Euro 10 billion, the French government are buying the remaining 16% of EDF that the don't already own and are renationalising the sector. It's how they are keeping energy prices low, relative to the UK, but does this represent a good use of government money - to be effectively subsidising the sector.

And are there other factors about private sector ownership that make keeping the electricity sector in private hands a more efficient decision? I suspect that the case for this is now harder to make than it was a few years ago.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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