In the past, France did well because of its great productivity. The 35 hour week put paid to that. But another factor is the growing inefficacy of French management. Workers respect their bosses less and less. One factor in this is the incredible job security that French workers have. Getting rid of a poor worker is very hard, to the point where most managers don’t even try. But another factor is the way that good managers are not rewarded with promotion. In many cases, what you did at business school counts for more than what you do in your day job. The Economist explains more
http://www.economist.com/node/21538733?fsrc=scn%2Ftw%2Fte%2Far%2Fthefrenchwayofwork