The Market Failure of

France
France is known for its rich culture, history and exceptional cuisine. However,
France has experienced several market failures that have affected its economy.
Let's dive deeper into this complex topic.

by Aditya SHARMA
Interesting Information and Fun Facts

1 Baguette 2 Amazing Artwork

The French consume an estimated 10 The Louvre Museum in Paris is the most-
billion baguettes each year. visited museum in the world with over 10
million visitors per year.

3 Cheese Selection 4 Market Day

There are over 400 types of cheese that Outdoor markets are a tradition in France,
originate from France. with every town or village having its
market day.
Statistics
GDP Growth
The French economy has been
stagnant in recent years with a
GDP growth rate of only 1.5%
in 2020.
Unemployment Rate
The unemployment rate in
France is consistently above
the European Union average
and stands at 8.1% in 2021.
Stock Market
The CAC 40, France's
benchmark stock market
index, has significantly
underperformed other major
stock market indices such as
the S&P 500.
Market Failure
Telecommunications

Despite having a well developed infrastructure, France's telecommunications industry has not
been able to keep up with the demand for internet and mobile services. A lack of competition
has resulted in high prices and poor service quality for consumers.
Government Intervention
1 Regulation

The government has imposed regulations and restrictions to prevent companies

from taking advantage of consumers and hurting competition.

2 Investment

The government is investing in infrastructure, such as building high speed

internet networks to provide better connectivity and increase competition.

3 Taxation

The government has increased taxes on large tech companies such as Apple and
Google, to encourage them to invest in the French economy.
Result
Market Failure Government Intervention

GDP Growth Low Positive Impact

Unemployment Rate High Positive Impact

Stock Market Index Underperforming Positive Impact