For decades France's nuclear industry was seen as a source of economic strength, providing cheap power for factories, hi-tech exports and tens of thousands of well-paid jobs. Today, it's looking more like a liability.
Electricite de France, the world's largest nuclear operator, must spend US$63 billion over the next decade to keep the country's ageing fleet of 58 reactors running safely. More urgently, nuclear engineering company Areva, touted as an export champion for a new atomic age, has lost billions from a project in Finland and investments in African uranium mines, raising the prospect of a state bailout.
"French nuclear has lost competitiveness due to mismanagement, technical difficulties and market changes after the Fukushima disaster," Alphavalue analyst Juan Camilo Rodriguez said. The financial "sickness" at Areva could prove contagious to the whole nuclear industry, he said.
France relies on nuclear power more than any other country - it generates about three-quarters of electricity - and the government, which controls EDF, Areva and atomic researcher CEA, plays a critical role.
"The situation is difficult for Areva," French Energy Minister Segolene Royal said last Monday, just hours after the company shocked investors by saying losses for 2014 would be about €4.9 billion (HK$42.5 billion), more than its market capitalisation.
The company has hired Credit Suisse, JP Morgan Chase, Citigroup and Rothschild & Cie Gestion to help with its restructuring, French magazine Challenges reported last week.