THE FRENCH FINANCE IN SOUTH-EASTERN EUROPE (1900-1914) (I) Abstract The changes which laid

their imprint on the economy of France by the end ofthe 19th century and which had been triggered
by a delay in its development, if setalong the young industrialized countries, hindered her
competitiveness on theindustrial and commercial levels as well as her expansionist tendencies.
Theabundance of capital, the low rate of the fmancing of industrial enterprises, theplummeting of
the purchasing power of the French citizen and the low coefficient ofdemographic growth, all led to
a consistent export of capital. The French finance viewed the Balkan market as a sound investment
withminimal risks, promising immediate and huge profit. Thereby, the global figure ofthe
investments in French francs soared from 970 million in 1902 to 3 thousandmillion in 1914. In
theory, this high value allowed for a variety of more or lessproductive investments: state loans, the
creation of railway networks, the building ofrailway stations, of bridges, silos, ports, roads, means of
water and sea transport,industrial investments, the creation of commercial enterprises, of
insurancecompanies, of communal public service enterprises and of bank investments andcredit. But
it is the state loans that would actually seem far more attractive ascompared to the productive area.
The participation of the French finance in loans granted to southeasternEuropean states generally
took place in consortium with the German finance, but in ashare superior to that of the latter.
Romania was to be the only country to count as anexception, given the agreement between France
and Germany according to which thelatter acquired a position of quasi-monopoly over the external
credit. As forBulgaria, France succeeded nonetheless to attain three emissions on the whole, andthis
in the first decade of the 19th century. Between the years 1867-1912, the Frenchshare in the state
loans rounded up 79 percent to Serbia, 45 percent to Bulgaria, 32percent to Romania and 28 percent
to Greece. Owing to these state loans andespecially to the warranting system, the French bankers
found themselves in theposition of being able to interfere with the financial legislation of these
countries andgained control over their fiscal policy (namely in Greece, in Bulgaria and in Serbia). 81
H. Lefevre-Maule, La grece economique et financiere en 1915, Paris, 1916, p. 255. THE FRENCH
FINANCE IN SOUTH-EASTERN EUROPE (1900-1914) (I) Abstract The changes which laid their imprint
on the economy of France by the end ofthe 19th century and which had been triggered by a delay in
its development, if setalong the young industrialized countries, hindered her competitiveness on
theindustrial and commercial levels as well as her expansionist tendencies. Theabundance of capital,
the low rate of the fmancing of industrial enterprises, theplummeting of the purchasing power of
the French citizen and the low coefficient ofdemographic growth, all led to a consistent export of
capital. The French finance viewed the Balkan market as a sound investment withminimal risks,
promising immediate and huge profit. Thereby, the global figure ofthe investments in French francs
soared from 970 million in 1902 to 3 thousandmillion in 1914. In theory, this high value allowed for a
variety of more or lessproductive investments: state loans, the creation of railway networks, the
building ofrailway stations, of bridges, silos, ports, roads, means of water and sea
transport,industrial investments, the creation of commercial enterprises, of insurancecompanies, of
communal public service enterprises and of bank investments andcredit. But it is the state loans that
would actually seem far more attractive ascompared to the productive area. The participation of the
French finance in loans granted to southeasternEuropean states generally took place in consortium
with the German finance, but in ashare superior to that of the latter. Romania was to be the only
country to count as anexception, given the agreement between France and Germany according to
which thelatter acquired a position of quasi-monopoly over the external credit. As forBulgaria,
France succeeded nonetheless to attain three emissions on the whole, andthis in the first decade of
the 19th century. Between the years 1867-1912, the Frenchshare in the state loans rounded up 79
percent to Serbia, 45 percent to Bulgaria, 32percent to Romania and 28 percent to Greece. Owing to
these state loans andespecially to the warranting system, the French bankers found themselves in
theposition of being able to interfere with the financial legislation of these countries andgained
control over their fiscal policy (namely in Greece, in Bulgaria and in Serbia). 81 H. Lefevre-Maule, La
grece economique et financiere en 1915, Paris, 1916, p. 255.