Cramer is Bullish on France


Leading up to the French presidential elections this Sunday, CNBC’s Jim Cramer declared France the best market in the world.

Cramer offered one simple reason: Nicolas Sarkozy, the conservative candidate, who is expected to win the race in its second round. Polls show him with 53%.


If elected, Sarkozy would likely reform the country’s economic landscape, including labor laws that curb the work week.

"With Sarkozy, the règle de jour (rule of the day) will change," Cramer said. "This is the France of liberty, equality and profitability… Now with the possibility of electing a guy who is basically your prototypical rapacious capitalist, a man who correctly measures his strength by earnings per share and not popular polling, we’re about to have the right man running France."

Cramer highlighted France’s competitive advantage over other potential market leaders. Brazilian stocks, for instance, could fall 5%-10% if the U.S. Federal Reserve hikes interest rates. Meanwhile, Russia and China’s accounting practices remain questionable. France, however, is a key player in the nuclear power market and a major winner in the chase for Iraqi oil. "The French play for everyone," he said. "They’re the ultimate mercenaries."

France also fairs better than the United States in the competition for international business, Cramer said. U.S. foreign policy under the Bush administration has tainted the nation’s name abroad. "The advantage always goes to France now," Cramer said. "Despite their history of ridiculously exploitative imperialism, they’re a whole lot more popular around the world than we are."