France’s economic freedom score is 62.5, making its economy the 73rd freest in the 2015 Index. Its overall score has decreased by 1.0 point, with particularly large declines in labor freedom and the management of government spending. France is ranked 33rd out of 43 countries in the Europe region, and its overall score is higher than the world average but below the regional average.
Over the past five years, France’s economic freedom has waned as the size and reach of government have expanded. A stagnating domestic economic environment has led to persistently high unemployment, particularly among young people, and structural deficiencies have suppressed dynamic private-sector expansion. Since 2011, economic freedom in France has declined by over 2.0 points, falling in five of the 10 economic freedoms including the control of government spending, fiscal freedom, and labor freedom.
However, with such institutional strengths as strong protection of property rights and a relatively efficient legal framework, the French economy is diversified and modern. The entrepreneurial environment is generally facilitated by a sophisticated and relatively resilient financial sector. The government has pursued reform measures to increase the economy’s competitiveness and flexibility, but progress has been slow and patchy.