Nationalization of EDF: a "costly" operation according to the Court of Auditors

The 100% nationalization of EDF, decided in 2022 by Emmanuel Macron In the context of an energy crisis and a resurgence of nuclear power, the operation has been severely criticized by the Court of Auditors. In a report published Thursday, the institution considers that the operation was "costly for the state budget" and that its necessity "has not been demonstrated at this stage."

The French state, already the majority shareholder with approximately 84%, had spent nearly €9,7 billion to acquire full ownership of the French energy giant. However, the Court of Auditors considers this increase to 100% ownership to bring only "difficult-to-identify advantages."

An operation deemed largely unjustified

The report recalls that even before full nationalization, the public authorities already exercised very significant control over EDF, through their majority stake but also via the regulation of the energy market and the orientations of energy policy.

According to the financial magistrates, neither the issues of energy sovereignty, nor the financing needs of the group, nor even the desire to strengthen its management required full state ownership of the company.

This criticism comes at a time when the total takeover had been presented by the executive as essential to accelerate strategic decisions in the face of soaring energy prices caused by Russia's invasion of Ukraine.

Huge investments to come

The Court of Auditors also points out that this nationalization directly increases the financial burden on the State, now the sole shareholder of EDF at a time when the company has to face gigantic investments.

These include the program to build six new EPR2 nuclear reactors, estimated at around €72,8 billion. The institution notes that this spending will occur in a context already marked by a sharp deterioration in French public finances.

While acknowledging that the operation was carried out during a particularly tense period for EDF, which was facing financial and industrial difficulties and the European energy crisis, the Court believes that more time will be needed to measure its long-term effects.