II‑  Economic Context
•Relies on planning more than other western governments
•Much state ownership
•2003 highest tax burden in course after Sweden
•Social benefits include pregnancy allowances, child allowances, free health care including prescriptions, and free education through university level
Economic Context
   One of most regulated economies in western world

Relies on planning more than other western governments
   Non‑compulsory plans with financial incentives for compliance

Much state ownership
   Despite program of privatization going on
   e.g. Renault the largest auto maker, Air France
   Government employs about 1/5 of the non‑agricultural labor force

2003 highest tax burden in course after Sweden
   Taxation and government spending both about 50% GDP compared to US at about 30%

Social benefits include
   2nd lowest rate of child poverty in the course after Sweden
   About 1/3 US level