28 February 2012

French capitalism = socialist cronyism

On February 20 the French financial newspaper, Les Echos, announced that Mr Proglio, former CEO of Veolia, the world leading environment company, now CEO of EDF (one of the world largest electricity companies), designed a plot to oust the current CEO, Mr Frerot who has been trying to sort out the mess left by Mr Proglio, still a Director of Veolia. His replacement was meant to be Mr Borloo, former Minister in the Sarkozy Government until last summer (when he was not nominated Prime Minister), and candidate for the Presidency who unexpectedly dropped out of the race a few weeks ago to support President Sarkozy… Please note that Mr Poglio was strongly promoted by Sarkozy to arrive at the helm of EDF.
This is typical of political cronyism which looks more like what is witnessed in banana republics than in a so called developed democratic country.
France has never ever been economically liberal despite what is said on media, in political circles or with outdated unions (few remember that during the early 70’s the French Stalinist communist party was gathering around 23% of votes!). France has always been a centralized country since the affirmation of the absolute monarchy with Louis the XIV during the 17th Century; such centralization might work when the ruler at the helm is able, otherwise you run to disaster: unfortunately for France, since General de Gaule (i.e. for the past 40 years), France has never been ruled by a statesman but by politicians of varying quality (generally average to low), always with a socialistic agenda. Since the Mid-90s, cronyism has developed at a fast pace which has been detrimental to French citizens well-being.
Mr Proglio is unfortunately not due to renewal as a Director of Veolia until 2014. I invite all shareholders of this company to draw a line in their agenda for 2014 and vote against his re-appointment (if he is a candidate indeed).
Please note that EDF share price lost 50% since Mr Proglio took over EDF as CEO.
Bloomberg: Veolia Falls After Les Echos Says CEO Frerot May Be Replaced: Paris Mover