ABSTRACT
This chapter reviews the main features of the French capitalist system, which relied mainly on large public corporations and family companies until the end of the 1980s and on close links between economic and political elites. It documents the evolution of public and private large companies. The chapter analyses the separation of ownership and control in relation with the most recent corporate governance rules. It discusses political and economical implications before presenting qualitative evidence with Vivendi. The chapter mentions that exchanges between political elites, public administrations and business were a powerful driver for the post-war economy and underpinned French dirigisme. In the area of corporate governance and finance, French governments exercised substantial influence through three connected mechanisms: a large direct ownership stake in the economy, a policy of indicative planning, and a system of credit allocation. Ownership was the most obvious element of the state's presence in the economy.
