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Bad For Business
As if France didn't have enough problems, the Republique is suffering from what one might call a bout of economic schizophrenia.
On the one hand, in 2005 French companies were the world's third-biggest source of global cross-border takeovers. From banking to telecoms, cosmetics to glassmaking, corporate France is in an expansionist mood, gleefully striding into new markets, trampling over competitors and exploiting the global economy.
But business investment or takeovers are not a two-way street in Paris.
The European Commission is now likely to begin legal proceedings against France over a French decree declaring eleven business sectors, from casinos to military technology, off limits to European Union or other foreign investment.
The barriers were hastily erected by - guess - French prime minister Dominique de Villepin after rumours that the American soft drinks company PepsiCo was interested in buying the the French food company Danone.
To add a bit more icing to the cake, the EU's executive body (the commission) is gearing up to take action against France for orchestrating a merger between Suez and Gaz de France in order to block the Italian company Enel from acquiring Suez.
There is growing concern that the French government is giving re-birth to national protectionism to guard its industrial "champions". There are even reports that French intelligence services have drawn up a list of firms that could be takeover targets.
Another contradiction is that while the Paris Bourse (stock exchange) soared to its highest level since 2001 in March, and financial results show record profits for the country's top 40 companies in 2005, up 50 per cent on 2004, the average French citizen is not convinced.
According to a recent poll by GlobeScan, France ranks last after China, US, India, Britain, Germany, Italy, Russia, on the question: "The free-enterprise system and free-market economy is the best system to base the future of the world".
China was top with 75 per cent with France bottom with 36 per cent.
Does De Villepin's dreaded 'CPE' (Youth Employment Contract) affect matters ?
Laurence Parisot, head of the Medef employers group says that the continuing protests throughout the nation are posing a threat to the economy.
It is too early to tell if the dire situation isdeterring foreign investment. Which means, in reality, setting up a business which would create more jobs.
It's anyone's guess. But the common sense guess is that this is the case.
High labour costs, the CPE crisis and creeping national protectionism are all combining to send the wrong signals to the global business community.
To paraphrase the American film director Stanley Kubrick, France is facing the world with eyes wide shut.
