France in search of a new identity
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Case Details:
Case Code : ECOA102
Case Length : 12 Pages
Period : 2003
Organization : Various
Pub Date : 2003
Teaching Note :Not Available
Countries : France, Europe
Industry : -
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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I have heard and understood your call: that the republic should live, that the nation should reunite, that politics should change
- Jacques Chirac, President1.
Introduction
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France, one of the world's most developed countries, had been the driving force behind the Euro along with Germany. In the late 1990s, France had enjoyed strong growth since the upturn, which started in 1997. French GDP grew by 3.2% in 1998, 2.9% in 1999 and 3.4% in 2000. But since 2001, growth had slowed down. The government expected the growth rate to be only 1% in 20032.
In an age of liberalization, privatization and globalization, the French continued to believe in a strong government. In 2001, the state spent a hefty 48.6% of GDP, one of the highest proportions in the European Union (EU) and employed 25% of the country's workers3.
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During the 1990s, the government had made some progress in the reduction of budget deficits. Taxes, however, remained the highest among the G-7 industrial countries. Regulation of goods and labor markets was also pervasive...
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