LONDON -- The big idea was that Europe would do away with economic nationalism, sweep away frontiers and stand as a shining example to the rest of the world of free trade and open markets. That was the dream. The reality is turning out rather differently.
Suddenly barriers seem to be going up all round in Europe in defense of national champion industries and public-sector utilities. Several member states of the European Union, with France most notable among them, are now making it crystal clear that foreign takeovers are not welcome, especially where "strategic" industries, such as energy supply, vital transport and water-supply services are concerned, but also in service industries as well.
For example, Spain is blocking a bid by the giant German utility E.ON to take over its electricity supplier Endesa. France is rejecting an attempt to take over the energy and finance conglomerate Suez by the Italian combine ENEL, to the fury of the Italian government. The leaders of tiny Luxembourg have also made clear their dislike for the bid by the British-based steel corporation Mittal to gobble up their "jewel" Arcelor, a global steelmaker that has plants in Belgium, France and Spain.