No Fiat/Citroen merger
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by Tony Wilding
• Disappointment and discouragement are reported to be the main reaction among officials of the EEC in Brussels at the stop put on a possible Fiat-Citroen merger by the French Government. The term "veto" has been used, but it is hard to sec how an exchange of shares in Swiss holding companies can be vetoed by France and it is more likely that "back-door" influence has been used on the French parties to the deal.
French Government concern at the merger is understandable. as pointed out in the Paris Show report in CM last week. But the action of the Government is seen as a direct contradiction of the ideals of the Customs Union. The Fiat-Citroen link would have been the first major crossfrontier merger within the Common Market, and if the ideals of a European community are eVer to be met, such alliances are essential ingredients. Once again France appears to have blocked a possible advance in inter-Six relationships.