Just to set the record straight, it's known as "France at two different speeds".
On one hand, there are many world renowned, dynamic and highly competitive French companies; on the other, there are also the totally unefficient, lazy, state run "companies" that totally drag the French economy down.
We say in France that it's a "country of assistance and aid". Many many lazy asses believe they DESERVE
a stable, well paying, easy and not time consuming job... There's supposed to be an aid (money) from the government for anything that goes bad in life...
Actually, the worst cases are the "fonctionnaires", "functionaries", a loosely equivalent term would be "civil servant" or "government worker".
But in France, it's like an epidemic, many many people are unnecessarily "fonctionnaires". While it's understandable that the true government workers are "fonctionnaires", it's really ridiculous that for example the older generation of France Telecom employees also benefit "fonctionnaires" advantages.
Basically, almost all the once/currently state owned companies have huge numbers of employees that work very little, go on strikes all the time, and have insanely/unfairly good retirement plans...
France Telecom, SNCF (the French railways), EDF (Electricity of France) and so many others...
Basically, the highly productive and competitive France pays ridiculous amount of taxes to sustain a system that feeds the lazy ass France. This is also why so many successful French companies are trying to go offshore in order to escape this mess.
Just for your info, l'Oreal, Renault, French participation of Airbus, Alcatel, Saint-Gobain etc.. are French companies that are among the best in the world in their respective fields.