What investor is not frustrated by today’s stock market? The Dow Jones index is back to its 1997 level and it seems that things will never quite return to the way they were. Some investors believe that today only emerging markets in
Asia or
South America can provide real growth opportunities in the long run. They cannot be more wrong. One great example is
France. Although the country is best known for its high tax level and its lack of labour flexibility, it is also a global leader in renewable and fossil energies.
France has hit the headlines more often since Nicolas Sarkozy was elected President in 2007. Sarkozy’s main goal during his presidency is to restore France’s power on the international scene. His strategy is very simple: to be a powerful country, France needs to have a strong military and/or global leading companies established worldwide. Obviously France is not going to catch up with Russia, China and the US in term of military power and as a result Sarkozy has focused on developing and selling France’s best assets: its businesses. Subsequently, that translates into important growth opportunities for investors.
In 2007, Sarkozy had one bastion of economic clout; France was a global leader in nuclear technology at a time when global warming and high oil prices started to be a real concern. France is viewed as an excellent example of an energy independent state, with more than 70% of its energy consumption coming from nuclear energy. Sarkozy was quick to realize the importance of nuclear technology in an environment of high commodity prices and he capitalized on it. Early in his presidency, he met with CEOs of Areva, Total, Alstom, EDF, GDF, Suez and Bouygues.
