portant, with exports equaling
two-fifths of GDP. Finland excels in high-tech exports, e.g., mobile
phones. Except for timber and several minerals, Finland depends on
imports of raw materials, energy, and some components for
manufactured goods. Because of the climate, agricultural development
is limited to maintaining self-sufficiency in basic products.
Forestry, an important export earner, provides a secondary
occupation for the rural population. Rapidly increasing integration
with Western Europe - Finland was one of the 12 countries joining
the European Economic and Monetary Union (EMU) - will dominate the
economic picture over the next several years. Growth in 2003 was
held back by the global slowdown but picked up in 2004. High
unemployment remains a persistent problem.

France
France is in the midst of transition, from a well-to-do
modern economy that has featured extensive government ownership and
intervention to one that relies more on market mechanisms. The
government has partially or fully privatized many large companies,
banks, and insurers. It retains controlling stakes in several
leading firms, including Air France, France Telecom, Renault, and
Thales, and is dominant in some sectors, particularly power, public
transport, and defense industries. The telecommunications sector is
gradually being opened to competition. France's leaders remain
committed to a capitalism in which they maintain social equity by
means of laws, tax policies, and social spending that reduce income
disparity and the impact of free markets on public health and
welfare. The government has lowered income taxes and introduced
measures to boost employment and reform the pension system. In
addition, it is focusing on the problems of the high cost of labor
and labor market inflexibility resulting from the 35-hour workweek
and restrictions on lay-offs. The tax burden remains one of the
highest in Europe (43.8% of GDP in 2003). The lingering economic
slowdown and inflexible budget items have pushed the budget deficit
above the eurozone's 3%-of-GDP limit. Finance Minister Herve GAYMARD
has promised that the 2005 deficit will fall below 3%.

French Guiana
The economy is tied closely to the much larger French
economy through subsidies and imports. Besides the French space
center at Kourou (which accounts for 25% of GDP), fishing and
forestry are the most important econom