Macron-Style Capitalism Is Taking Over in Europe
Even the Dutch are getting into state intervention with the purchase of an Air France-KLM stake. It’s understandable, but bad news for investors.
Air France-KLM shows that even the famously laissez faire Dutch are being pulled into French-style dirigisme.
Photographer: LUDOVIC MARIN/AFP“Europe is starting to turn French,” according to Zaki Laidi, a professor at Sciences Po in Paris and former government adviser. It’s a compelling argument, and not just evidenced by Germany being pulled toward President Emmanuel Macron’s position on issues like European-wide industrial policy, climate change and U.S. tariffs.
Now, even the pragmatic, liberal, fiscally conservative Dutch have opted for French-style state intervention with the purchase of a $775 million stake in Air France-KLM. The hitch is that in trying to emulate Macron’s penchant for dirigisme (France already owns 14 percent of the Franco-Dutch airline), the Netherlands will probably end up butting heads with him too. Shareholders are right to be spooked.