Public enterprises and the privatization in the innovative policy of France

Abstract

The author considers the role of the public enterprise sector in France and the use of its resources for the establishment of the Fund for industry and innovation (FII) in the framework of the policy of President E. Macron. Contraction of the state's presence in the capital of public enterprise is also aimed at reducing the deficit of the state budget deficit and the public debt, which is comparable to the volume of France's GDP. Such policy also concerns improving of management and increasing of the enterprises' efficiency. An overview of the public enterprise sector in France is considered along its definition; branch structure is given. Strategic and non-strategic enterprises are distinguished. The state can freely cede its share in the capital of non-strategic ones. Since 1986, the period of "cohabitation" in France of the left socialist president F. Mitterrand and the right-wing Prime Minister J. Chirac (1986-1988), a reduction of state shares in the capital of enterprises took place. The author regards different points of view on the problem of financing risky and long-term innovation programs with the FII. The efficiency of the plans and the real steps to transfer a number of minority shares of the state in order to support the FII are analysed. The author points at the trends to develop public-private partnerships, to create European companies in accordance with the requirements of the global market and the task to modernize France's economy. E. Macron is sometimes called "liberal-etatist". His economic policy is technocratic by nature. When necessary, it does not exclude either privatization or temporary nationalization. The results of the reforms announced by E. Macron, including stimulating innovation and public-private partnership, are likely to be seen far beyond his fiveyear presidential mandate.