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  • Essay / Disney v. French Government - 982

    The most fundamental condition for a rational and effective agreement is the ability of the parties involved to determine their interest in the negotiation in question. To what extent have Disney and the French government succeeded in: a) identifying their underlying interests? The interests of each party were quite different. In fact, those of Disney were primarily financial interests, while those of the French governments were political and economic. The distinction underlined is that the French interests were linked together, while those of Disney represented different interests without links between them. Disney's interests were clearly defined. But they have a strategy that highlights another facet of the future park: Barcelona. Disney was more attracted by the French proposal but put the two in competition. They then hope that the French government will make some concessions. For this, they make Barcelona more attractive than it really was. They wanted: favorable land purchase conditions: a direct investment basis (no licensing) a financial plan that would reduce their initial capital investment increase Disney's share of upside potential as much as possible the French government will make tax concessions the government will finance the improvement of transport infrastructure in the regionTheir interests have been well underlined. Indeed, regarding the question of investments, the French site was very favorable because it was located in the "new towns", which only passed through a single authority called EPA (Etablissements Publics d'Aménagement). This element is crucial for the duration of the negotiation. Indeed, the more intermediaries there are, the longer the negotiation will take. The other major advantage of the French project is that the French government does not hesitate to expropriate the land necessary for the park. Disney could have seen this as a positive point. negotiation when the French Prime Minister signed the first letter of agreement between the two parties. Indeed, the fact that the Prime Minister himself signed the letter shows how important the project was to the French government. Disney then knew that it was in a position of strength and that it could obtain concessions from the French government. On the other hand, the French government had various interests. He made it clear that their major interest was the employment and income created by the project. But there are other interests: the development of the eastern suburbs of Paris the creation of 60,000 jobs, which would reduce unemployment the impact on the construction sector which has gone through a bad period creation revenue for French suppliers during the construction and operation phases