Reflections on the Exercise of Special Powers: The Golden Power Revisited

The exercise of special powers, particularly the “golden power,” has long been a topic of debate and controversy in the realm of government and business. These special powers grant the state or regulatory authorities the ability to intervene in specific industries or sectors for reasons of national security or economic stability. In this article, we will revisit the concept of the golden power and reflect on its use and implications in today’s globalized world.

The Origins of the Golden Power

The golden power, also known as the “special share” or “special veto,” originated in the 1970s as a tool for governments to exert control over critical industries such as defense, energy, and telecommunications. It was primarily motivated by concerns over foreign takeovers and the potential impact on national security.

While initially implemented to safeguard national interests, the golden power has evolved over time, encompassing a broader range of sectors and objectives. As globalization has increased interdependence and blurred boundaries, governments have sought to protect not only national security but also economic stability, competition, and even cultural heritage.

Examples of the Golden Power in Action

One prominent example of the golden power is the case of Huawei, the Chinese telecommunications giant. Several countries, including the United States, have utilized their special powers to limit Huawei’s involvement in their domestic 5G networks due to concerns over potential espionage and control by foreign entities. This exercise of special powers has not only affected business operations but has also strained diplomatic relations and raised questions about the balance between security and competition.

Another example is the European Union’s use of the golden power in the energy sector. The EU has enacted regulations to protect critical energy infrastructure from foreign control, particularly in strategic sectors like oil and gas. By exercising this power, the EU aims to guarantee energy security and preserve its autonomy in decision-making related to its energy resources.

The Implications and Challenges

While the golden power may be seen as a necessary tool to protect national interests, it also raises several implications and challenges.

Firstly, the exercise of special powers presents a delicate balance between protecting national security and maintaining a fair and competitive marketplace. Governments must be cautious not to abuse these powers for protectionist purposes, which could hinder innovation and distort market dynamics.

Secondly, the exercise of the golden power can strain diplomatic relations between countries. When governments intervene in the operations of foreign businesses, it can lead to retaliatory actions and trade tensions. Finding a balance between sovereignty and cooperation is crucial to prevent conflicts and promote economic stability.

Lastly, the golden power may create uncertainty and discourage foreign investment. If potential investors fear government intervention and lack confidence in a fair regulatory environment, they may choose to invest elsewhere, depriving economies of valuable resources and opportunities for growth.

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In conclusion, the exercise of special powers, such as the golden power, remains an important tool for governments to protect national interests and preserve economic stability. However, it must be exercised with caution to strike a balance between security and competition, avoid strain in diplomatic relations, and maintain a favorable investment climate. #BUSINESS