Mandelson backs change to state aid
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He cited French support for the energy and transport company Alstom - "which was rescued from oblivion" - and Areva, the nuclear generator, as examples of "what sensible, smart government can do to help the private sector".
The business secretary joked that he viewed Mr [Michel Barnier] differently when he was EU trade chief and the Frenchman was agriculture minister, defending French farming interests. "I worked very closely indeed with him," he said archly. "In fact, I never took my eyes off him."
"I'm in no way suggesting that we overturn the apple cart," the business secretary told the private meeting. He said his comments in an FT.com article about takeovers - including the contentious Kraft bid - were "not about foreign versus domestic ownership" but "responsible management and ownership with a real eye on the long term, as well as the short".
Business secretary hails French model ; More support urged for high-tech sector
Peter Mandelson called for more "flexible" EU state aid rules yesterday to allow government support for cutting-edge companies, hailing the industrial activism of the French government as a good model.
The business secretary used to be sceptical of France's approach, but since his return to British politics in 2008 he has become an increasingly vocal supporter of a "smart" industrial policy.
Yesterday, Lord Mandelson said: "We want to see revised risk capital guidelines for public financing of high-tech and innovative companies. We want a little flexibility to enable smart public sector intervention."
As EU trade commissioner, Lord Mandelson was a frequent critic of French industrial policy, including Paris's prescription of casinos and yoghurt manufacturers as strategic sectors to be -protected from foreign takeover.
His recent intervention in Kraft's attempted takeover of Cadbury suggests his views about industrial activism have shifted, although he is not trying to block the US company's bid.
Yesterday, he told a meeting organised by Business for New Europe that Britain could learn from France in the way it invested in or rescued French high-tech companies, allowing them to flourish in new markets.
He cited French support for the energy and transport company Alstom - "which was rescued from oblivion" - and Areva, the nuclear generator, as examples of "what sensible, smart government can do to help the private sector".
Lord Mandelson said Europe should end in 2010 the temporary flexibility introduced into state aid rules after the financial crisis, arguing that rigour was vital in preventing distortions in the single market.
However, he believes the EU aid rules covering green technology companies and other high-tech firms could be made more flexible, even though there are numerous exemptions under EU law for such companies and other start-ups.
Responsibility for state aid rules now falls to Michel Barnier, French internal market commissioner, whom Lord Mandelson described as having "a lot of common sense".
But the business secretary joked that he viewed Mr Barnier differently when he was EU trade chief and the Frenchman was agriculture minister, defending French farming interests. "I worked very closely indeed with him," he said archly. "In fact, I never took my eyes off him."
Lord Mandelson sought to reassure investors, fund managers and company chairmen at a summit held yesterday afternoon that his recent rhetoric on the need to encourage company shareholders to take a more active role in vetting take-overs was not a precursor to nationalist regulation.
"I'm in no way suggesting that we overturn the apple cart," the business secretary told the private meeting. He said his comments in an FT.com article about takeovers - including the contentious Kraft bid - were "not about foreign versus domestic ownership" but "responsible management and ownership with a real eye on the long term, as well as the short".
The department for business declined to list people at the summit. But attendees included John Peace of Standard Chartered, David Jackson of BP and Rob Margetts of Legal & General.
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