By Chris Jones - 2nd April 2006
Hostile takeovers should not be allowed within the EU because of the inevitable toll they take on jobs, Jean-Claude Juncker has warned.
The Luxembourg prime minister told FT Deutschland that there was no justification for hostile bids.
“In a mature economic democracy such as the EU it must be possible to bring about mergers through negotiation if they are justified rationally,” he said.
“Pure market ideologists overlook that this is about the fate of people.”
Juncker’s comments come as the European commission prepares on Tuesday to take France to task over a new law protecting 11 “strategic” sectors from foreign takeovers.
The Luxembourg leader backed the French government’s stance and criticised Brussels for its approach to so-called “economic patriotism”.
“It gives the impression that everyone who questions planned or ongoing mergers is automatically a protectionist,” he told the paper.
Juncker himself has been accused of protectionism over his reaction to the hostile bid for steelmaker Arcelor, in which the Luxembourg government holds a major stake.
Arcelor has been targeted by Indian group Mittal Steel, but the authorities in both Luxembourg and France have attempted to block the deal amid fears of substantial job losses.
“I will not allow the ideologues of globalisation to prevent me from asking questions about industrial processes that affect [Arcelor],” Juncker told the paper.
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