All of these reasons are legitimate in themselves. But, taken together, they considerably restrict supply even though – as foreign examples have shown – demand is potentially sizeable. These restrictions also encourage the substitution of labour by capital and therefore result in growth that is both constrained and has an insufficient employment content. They are sometimes based on a notion of working rhythms that is out of step with the functioning of a modern society and technological progress. They are very costly for the economy. And, lastly, they do a disservice to those they set out to protect. The main victims are those for whom access to employment requires flexibility, adaptation, and freedom to choose working hours, i.e. primarily young people and women. A complete overhaul of all the legal and regulatory conditions governing a wide range of commercial and services activities therefore appears to be an urgent priority. Lastly, in order to increase France’s productivity, a shift towards technology- and sciencebased activities is essential. To do so, research and development (R&D) efforts must be encouraged. In this respect, while the share of public R&D expenditure is comparable or even greater than that of the country’s main trading partners, private sector R&D investment remains well below that in Germany, the United States or Japan. The creation of poles of competitiveness in 2005 and the Industrial Innovation Agency in 2006 contribute to achieving this strategic objective.
Such a transfer would be especially paradoxical since sustainable development has become a key priority and the quality of the environment passed on to future generations has never before to such an extent inspired and guided public action. * The French economy must now be allowed to fulfil its potential. While globalisation offers opportunities, it also creates numerous insecurities. The accumulation of such sentiment may result in slowing down or preventing the necessary reforms. But because the world economy  6  BIS Review 92/2007  is changing rapidly, the refusal to adapt would lead, inevitably, to weaker growth for France and greater insecurity for all French citizens, especially those that are least protected. This dilemma is not peculiar to France. All the other European countries are experiencing this friction between the natural desire for greater security and the unavoidable need to adapt. It is important for each country, according to its traditions and culture, to find the means of taking up this challenge. However, France boasts numerous and decisive advantages: Europe’s most dynamic demography; a high level of energy independence, which is an inestimable advantage in these times of economic and geopolitical uncertainty with regard to supplies; active and dynamic companies, which have been able to take ample advantage of the opportunities afforded by globalisation; and lastly a highly-skilled workforce which, to some extent, accounts for France’s high hourly productivity levels. These advantages must therefore enable France to achieve strong growth that creates jobs in a stable monetary environment. This opportunity must be seized.