New French PM vows to nationalise EDF and tackle cost of living crisis

theguardian.com:

France is to renationalise its indebted electricity giant EDF in response to the energy crisis aggravated by Russia’s invasion of Ukraine, the country’s prime minister, Élisabeth Borne, has said.

Borne vowed to limit the impact of rising energy prices despite the political turmoil of Emmanuel Macron losing control of parliament in recent legislative elections.

“We must have full control over our electricity production and performance,” Borne told parliament in her first state-of-the-nation speech to parliament on Wednesday, as she tried to court opposition parties to avoid parliamentary deadlock.

“We must ensure our sovereignty in the face of the consequences of the war and the colossal challenges to come … That’s why I confirm to you the state’s intention to own 100% of EDF’s capital.”

The French state holds an 84% stake in EDF, one of the world’s biggest electricity producers, but the company is facing delays and budget overruns on new nuclear plants in France and Britain, and corrosion problems at some of its ageing reactors, which have heavily hit its shares price in recent months.

Macron, who was re-elected for a second term as president in April, wants massive investment in new nuclear reactors as a pillar of France’s push for carbon neutrality. Nationalising EDF is an idea that had also been recently promoted by the left, and Borne’s speech was seen as an attempt to appeal to different corners of a deeply divided parliament.

France is facing an unprecedented political crisis after Macron’s centrist grouping suffered big losses in legislative elections last month. The president’s centrist alliance, Ensemble (Together), won the most seats in the national assembly but fell about 40 seats short of the absolute majority