Chapter 4: France

Abstract

This chapter discusses the current issues of the French economy. It is obviously beyond the scope of this report to discuss all aspects. Our approach is therefore focussed on a central question: What is the current government trying to achieve economically and will it succeed? In order to address this question, we first provide some macroeconomic background and discuss it in connection with the main economic policy debates that have dominated French circles in the last two decades. We then describe and analyse the main reforms implemented by the Sarkozy administration.