France is increasingly becoming a peripheral euro-zone country

Actual developments in France are striking: Deindustrialisation and weak corporate modernisation; The fact the country’s external deficit in industrial products is offset partially by a surplus in tourism; Weak productivity gains and low labour force skills; Low product sophistication. Unfortunately, these trends are driving a wedge between France and the group of “core” euro-zone countries, and will continue to do so at least as long as the reforms have not corrected these various shortcomings.