Unfortunately in the euro zone, strong competition between countries now also concerns corporate ownership

The increase in the Dutch government’s stake in Air France-KLM confirms that the euro zone is characterised by strong competition between countries : Tax competition; Competition via labour costs; And now competition for the control of companies, and therefore to attract investment. This strong competition between the countries is of course inefficient compared with a situation of cooperation and coordination. This competition may lead to: A race to the bottom in tax rates; A race to the bottom in wages; Purely national ownership of companies, i.e. the end of equity portfolio diversification.