"Honestly, at the moment, I don't see any point in investing," said Alexandre Mizrahi, a senior entrepreneur in the French market.

Mizrahi recently liquidated his company amidst previous plans of expansion, including a Eur2 million investment and an increase in manpower. His decision to kill the business was due to the country's high taxes and increasing number of foreign competition, he said.

The 75-year old businessman founded Klaxcar, an automobile parts manufacturer. He said that if he was any younger, he would have moved his businesses abroad.

This anecdote highlights the current struggle of the French economy to provide a good investment atmosphere for its locals. Hurdles such as joblessness and the European recession have all contributed to the ongoing downward spiral of the economy.

Even as the French government reduced its interest rates, firms and businessmen are also reducing their investments.

"We need as little uncertainty as possible, but instead there's more and more," commented Pierre-Andre de Chalendar, the CEO of Compagne de Saint-Gobain, a construction materials company.