London Daily

Focus on the big picture.
Thursday, Jul 03, 2025

New French PM vows to nationalise EDF and tackle cost of living crisis

New French PM vows to nationalise EDF and tackle cost of living crisis

In speech to divided parliament, Élisabeth Borne tries to court opposition parties to avoid deadlock
France is to renationalise its indebted electricity giant EDF in response to the energy crisis aggravated by Russia’s invasion of Ukraine, the country’s prime minister, Élisabeth Borne, has said.

Borne vowed to limit the impact of rising energy prices despite the political turmoil of Emmanuel Macron losing control of parliament in recent legislative elections.

“We must have full control over our electricity production and performance,” Borne told parliament in her first state-of-the-nation speech to parliament on Wednesday, as she tried to court opposition parties to avoid parliamentary deadlock.

“We must ensure our sovereignty in the face of the consequences of the war and the colossal challenges to come … That’s why I confirm to you the state’s intention to own 100% of EDF’s capital.”

The French state holds an 84% stake in EDF, one of the world’s biggest electricity producers, but the company is facing delays and budget overruns on new nuclear plants in France and Britain, and corrosion problems at some of its ageing reactors, which have heavily hit its shares price in recent months.

Macron, who was re-elected for a second term as president in April, wants massive investment in new nuclear reactors as a pillar of France’s push for carbon neutrality. Nationalising EDF is an idea that had also been recently promoted by the left, and Borne’s speech was seen as an attempt to appeal to different corners of a deeply divided parliament.

France is facing an unprecedented political crisis after Macron’s centrist grouping suffered big losses in legislative elections last month. The president’s centrist alliance, Ensemble (Together), won the most seats in the national assembly but fell about 40 seats short of the absolute majority needed to pass laws.

Meanwhile, Marine Le Pen’s far-right National Rally saw a historic surge and greatly increased its seats to become the biggest single opposition party. The hard-left Jean-Luc Mélenchon’s France Unbowed party also largely increased its seats and is now the biggest leftwing party in a broad coalition known as the Nupes, which includes the Socialists and Greens.

Borne’s government faces a constant struggle to pass legislation and will hope to negotiate compromises on a case-by-case basis with certain opposition lawmakers. This is a sharp contrast to Macron’s top-down approach to power in his first five-year term, when he held an absolute majority in a parliament that largely rubber-stamped his plans.

“Disorder and instability is not an option for France,” Borne warned the new parliament in its raucous first sitting, where she often had to push on through chants, jeers and shouting. “We must give back meaning to the word compromise,” she said, promising to “approach every draft law in a spirit of dialogue” and openness.

As France enters a new era of political uncertainty, Borne was under pressure to articulate a political vision for France after Macron’s leadership was accused of losing its way on the domestic front in recent weeks. The president maintains leadership on France’s international policy, but he no longer has a free hand on domestic aims, including his plan to raise the pension age or overhaul the benefits system.

Borne said the first challenge was the cost of living crisis, and a new package of measures would be announced this week. She said France must press on with changes to the pension system, adding that there was “no project already set in stone” but that an overhaul was “indispensable”.

She said the French social model was a “paradox”, as one of the world’s most generous while people work for the fewest number of years.

She said her priorities were helping low-income families cope with rising bills and costs, releasing extra funding for the struggling health service and addressing inequalities, including reviewing disabilities benefits, while pushing for full employment.

The government has already been criticised for pushing back “urgent” climate legislation on renewables until September. Borne insisted the environment was a priority.
Borne, 61, a former civil servant, also used her speech to tell her own personal story after criticism from some parties that she was too technocratic and low-key.

Noisy lawmakers quietened and some applauded as she spelled out her family history, saying her father, a Jewish Resistance fighter who was deported to Auschwitz in 1944, “never really came back from the concentration camps”. He did return to France but took his own life when she was a child.

Borne said she was proud to be France’s second female prime minister and she promised the divided lower house: “We will manage to build together.”

Most new French prime ministers call a confidence vote after their first key policy speech. But Borne did not, because it was considered too risky without an absolute majority.

The left’s France Unbowed filed a no-confidence motion alongside its Socialist, Communist and Green allies even before Borne began speaking. But the motion, to be voted on later this week, is unlikely to pass.

It remains unclear which lawmakers will come onboard to pass crucial legislation on the cost of living crisis later this month. Mélenchon said Borne’s speech “offered nothing that would allow us to find compromises”. One lawmaker from the rightwing Les Républicains, seen as closest to a possible compromise with the government, called the speech “a catalogue of banality”.
Newsletter

Related Articles

0:00
0:00
Close
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
×