Free market fears shape French election rhetoric

By Swaha Pattanaik - Analysis

PARIS (Reuters) - French presidential hopefuls are promising to build Fortress France, regardless of whether their ideas for safeguarding jobs, firms and industries would be feasible, let alone benefit the economy.

As huge French firms rove the world seeking takeover targets and cheap foreign goods make French voters' money go further, presidential candidates from all sides are pledging to turn back the tide of globalisation.

That is in the tradition of a country where the ruling right has spent the past five years protesting against a strong euro, saving high-profile firms from collapse, and promoting "economic patriotism" -- fending off unwanted foreign bids on French firms.

Election campaign promises for more intervention are even less surprising given France is one of the rare countries where a majority believes the free market is not the best system.

France is not alone in trying to shield workers and firms from the rising job insecurity generated by the free movement of capital, goods or services. The United States, Spain, and Poland have also intervened to try to protect key firms or sectors.

But while France was the third biggest recepient of inward foreign direct investment in the world in 2006, large French firms have until recently rarely been takeover targets and its politicians' strident talk definitely stands out, analysts said.

"The position in France is more explicit and the government does not hide its protectionist inclinations while in other countries it is more subtle," said Juan Delgado, research fellow at Bruegel think-tank in Brussels."

"Sometimes there is a success story but the effectiveness of protectionist policies in the medium- to long-term are limited. The risk is that if you keep industry artificially isolated from international markets, it will become less competitive."