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STRUCUTURE OF THE ECONOMY
France has substantial agricultural resources, a
large industrial base and a highly skilled labour force. Service sector share in the GDP was close to 71% in 2003. Its economy is exceptionally diversified.
Agriculture and the agro-food industries account for a large share of economic activity than in many other west European countries. France's greatest strength in manufacturing are in sectors such as motor vehicles, pharmaceuticals, transport equipment and aerospace (civil and military). The construction sector represents around 5% of GDP.
ROLE OF MARKET vs GOVERNMENT
Key reforms have been introduced into the regulatory governance system in France over the past 20 years. The role of the State in the economy has been reduced and State ownership of companies has declined significantly.
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The majority of product markets are now open to competition.
However, despite significant reforms and privatization over the past 15 years, government continues to control a large share pf economic activity. This is true not only for the provision of services such as healthcare and education but also in economic activities such as banking and energy production and distribution (some gas and electricity providers are still 100% state owned). Besides, railway is a state monopoly and France telecom, the leading operator in France has maximum state equity.
Government economic policy aims to promote investment and growth in a stable monetary and fiscal regime. The govt. of France successfully brought down unemployment rate from 12% to 9.7% in 2004. However, it still remains higher than other European countries' standard.
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