There are
more uncertainties ahead of the European Union, despite the Brexit mess. There
are three major powers in the European Union, the United Kingdom (which has not
left the EU yet), Germany and France; and two of the three are in the Eurozone.
However, the European Union have other voices others than these three
countries'. The European Commission vetoed the merger between Siemens and
Alstom, the German and French train manufacturers. Both Germany and France are
unhappy about this decision made by the European Commission, and the French
economy minister called this merger a creation of "European industrial
champions".
France and
Germany have the strongest industries in Europe and when these two countries
start to cooperate with each other, including mergers, there will be much less
room left for other European Union countries, because they are living in one
single market. From the monopoly aspect, this merger should be blocked, because
these two train manufacturers' merging will create a train manufacturer with
the monopoly power. Other train manufacturers inside the EU simply do not the
competitive power to compete with this giant while the train manufacturers
outside the EU lose their competitiveness due to the tariffs imposed by the EU.
However, from these two companies' aspects, they believe the merger is
necessary and urgent. Yes, they probably have the monopoly power in the EU, but
their main purpose of the merger is to strengthen their competitiveness in the
global market when facing increasing competitions from other countries,
especially China.
The
disagreement of France and Germany with other European Union countries is that
France and Germany want to cooperate with each other and strengthen themselves
in order to be more competitive in the global
market but other EU countries do not want more powerful France or
Germany as they are afraid of losing more European markets and benefits to
France and Germany.
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