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Size and characteristics of markets France France is in the midst of transition, from a well to do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The Socialist led government has partially or fully privatised may large companies, banks and insurers, but still retains controlling stakes in several leading firms, including Air France, France Telecom, Renault and Thales and remains dominant in come sectors particularly power, public transport and defence industries. The telecommunications sector is gradually being opened to competition. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public heath and welfare. The current government has lowered income taxes and introduced measures to boost employment levels. At the end of 2002 the government was focusing on the...

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