BNP Paribas is still in line to take over the remains of Fortis Bank in Belgium, under a deal which would have provided the Belgian state with enough BNP equity to make it the majority shareholder. The deal was brought to a grinding halt last December through legal action brought by a consortium of small shareholders in Fortis, who considered the sale price too low and protested at not being consulted.

The latest move by the Sarkozy government has spread discontent in the takeover even further. Now opposition parties intend to grill the government as soon as parliament resumes after Easter. One of the main questions will be: how much did prime minister Herman Van Rompuy know about the impending French acquisition when he met with Sarkozy at the end of March?

The French stake means Paris will now be the major shareholder in BNP Paribas, not Brussels – with all that that entails for the defence of national interests. The Belgian stake will be diluted by 7% of its original value through the creation of new shares.

Belgian opposition parties Groen! and SP.A fear that the Belgian government will not be able to counter attempts by Paris to direct policy. Even though the new shares are not voting shares, pointed out Meyrem Almaci of Groen!, “Sarkozy will know very well where he wants to go. Our position will be superseded by French interests.”

De Grauwe, meanwhile, a professor at the Catholic University of Leuven, does not mince words: “We’ve once again let ourselves be rolled over by the French. They dilute the shareholding, and we stand by and let them get on with it.”

To add insult to injury, he pointed out that the French are paying only €27 per share, while the Belgian deal puts a nominal value on the same shares of €68 – meaning the Belgian government is paying more than double. “Our ministers let themselves be handled like toddlers,” De Grauwe said. “I don’t know whose interests are being defended here, but it’s certainly not the country’s.”