The Economy of France

France is gradually moving from a well-to-do modern economy with extensive government ownership and intervention to one that is driven by market dynamics. More and more industries and services are being privatized including large companies, banks, and insurers.

The government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition.

With at least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. France has an important aerospace industry and is the leading agricultural producer and exporter in Europe.

In 2006, the French government introduced measures that attempt to boost employment through increased labor market flexibility. The tax burden, however, is still one of the highest in Europe (nearly 50% of GDP in 2005). Despite having high productivity, France suffers from the after-effects of about thirty years of massive unemployment, which has significantly reduced the size of the working population.

The French currency is the Euro.