The embattled French computer firm Groupe Bull breathed easier this
week when the European Commission agreed to allow the French government
to give it 2 billion francs ( 拢200 million) in capital, plus 2.6 billion
francs to pay for R&D over the next five years. The Commission was investigating
the gift on suspicion that it was unfair state aid to a private company.
The French government, which owns 76 per cent of Bull, said it was acting
like any shareholder and protecting its investment.
If the Commission accepts France鈥檚 right to invest in state-owned companies,
it could mean a new lease of life for a large segment of France鈥檚 high-technology
sector, including Thomson, the defence and electronics group that is also
being scrutinised in Brussels for receiving government funds.