France Faces Economic Decline and Scrutiny Over Foreign Ownership in Strategic Industries

France is grappling with significant economic challenges in 2026, highlighted by a decline in GDP per capita and controversies surrounding foreign ownership of key French industrial and pharmaceutical companies. An analysis reveals that France’s GDP per capita has dropped below the European average, leaving the country poorer than Cyprus and Belgium — a gradual but accelerating decline over the past decade.

In parallel, political tensions have surfaced around the transfer of French firms to foreign investors. Jordan Bardella, leader of the Rassemblement National, criticized the recent acquisition of the French aerospace manufacturer LMB Aerospace by an American group, voicing concerns over national sovereignty in strategic sectors.

The pharmaceutical industry also faces scrutiny as Biogaran, a French generic drug manufacturer, was sold to the British investment fund BC Partners. French Economy Minister Roland Lescure addressed the controversy by assuring that the state will actively participate in the governance of Biogaran and that specific conditions have been imposed on the foreign fund to safeguard French interests.

Further reflecting concerns over foreign control, the Supreme Court of Panama annulled the concession that allowed the Hong Kong conglomerate CK Hutchison to operate the ports at the Panama Canal entrances, declaring the underlying laws unconstitutional. This ruling carries broader implications for international management of strategic infrastructure.

These developments illustrate the French government’s dual challenge: arresting the long-term economic decline while balancing openness to foreign investment with protecting national industrial sovereignty. Minister Lescure’s assurances indicate a more active state role in governance to mitigate risks associated with foreign ownership in vital sectors.

The unfolding situation underscores a critical moment for France as it seeks to reinforce economic resilience and preserve control over strategic industries amid global economic pressures.