French state will never let EDF fall by the wayside, says finance minister Le Maire
EDF.PA
PARIS, Jan 19 (Reuters) - The French state will "never" let utility EDF fall by the wayside and will support the company as it faces difficulties due to French policy measures to cap power price hikes for consumers, said Finance Minister Bruno Le Maire.
Le Maire's comments came one week after the government of President Emmanuel Macron - facing a re-election battle in three months - ordered the utility to sell more cheap nuclear power to rivals, prompting the state-owned company's CEO to openly criticise the government.
"If prices are low and less lucrative, the state will stand by EDF's side," Le Maire told RMC radio.
The main trade unions at EDF have called for strikes, adding to criticism by EDF Chief Executive Jean-Bernard Levy who called the latest government decision a "real shock" and announced measures to defend his company's interests.
Le Maire added on Wednesday said that no EDF staffer needed to worry about their future.
"We will support this great public company which is the pride of the French people," he said.
"We will continue to invest in EDF because we have the objective of building new nuclear reactors that, from a strategic perspective, are absolutely decisive for EDF."
The French state owns 84% of EDF's shares, which have lost almost 40% of their value since October.
The group forecast last week that the government decision would knock around 8 billion euros ($9.13 billion) off its 2022 core earnings before interest, taxes, depreciation and amortization.
The hit came as EDF prepares to finance billion-dollar investments in new reactors that President Macron has said the country is planning to build. (Reporting by Tassilo Hummel; Editing by Sudip Kar-Gupta)