France says won EU backing on takeovers law, EU says will monitor

France has won EU backing for a decree allowing the government to block foreign takeovers of French companies in strategic industries, its economy minister said on Thursday, but the European Commission cautioned it would monitor the law closely. In a surprise move, the government widened in May its control over mergers in industries deemed key to France's national interests as General Electric was seeking to buy the energy assets of French group Alstom. "The European Commission in recent days notified the French government of its approval of the decree as perfectly in line with European treaties," Arnaud Montebourg said in a speech. Chantal Hughes, spokeswoman for the bloc's financial services chief Michel Barnier said the Commission, the EU's executive body, was in contact with French authorities over the issue and had taken "note of the law".