In the last two years, French wholesale markets have been focused on the revamping of their juridical and financial status.

For many of the markets scattered throughout the country the case is closed. The latest arrangements published once again have changed the reality of the law.

We all remember the Spring 2004 bill, which enforced the necessity of derogation for a company wanting to settle in a market’s perimeter. We also remember the December decree which again completely changed things, leaving market authorities sidelined. Finally we have the application paper, a kind of practical modus operandi for the bill, and guess what? According to the document, the markets will finally have their say over whether to allow a company to work in its perimeter.

This means the market’s views will be taken into consideration in any final decision. As well as this, any company attempting such a move will have to provide a thick survey document with statements, figures, stats, et al, to prove it will be beneficial to the distribution in the area. So if a market has developed enough services to comply with what its customers are looking for, the question will be why add what could be a redundant activity onto the market?

Take Rungis: anyone putting across an argument will need considerable back-up evidence to prove its viability. Of course, as we are dealing here with the law everything is far from black and white. The market will only have one month to give an answer, and this may appear quite short, particularly when you consider that the companies asking for derogation have worked between 12 and 18 months on the topic.

Meanwhile, last week we had the first consequence of the application of the laws. According to French newspaper FLD, the Rungis authority announced the state was about to sell part of its share in the market capital.

Up to now it held some 56 per cent share which gave it a majority holding. The rest was divided between Paris Town, Val-de-Marne district, and banks and professionals. According to reports, 20 and 25 per cent is likely to be sold. The Credit Agricole bank seems to be in a good position to win, although the state will retain a blocking minority.

This major change should give Rungis more freedom to develop its activity abroad, especially in China and Northern Europe. It will also be easier for it to act as consultant and developer for other French markets. The pace is quick: all of this should be done in the forthcoming weeks, with the summer as a deadline.

The market might have been waiting a long time for this possibility: it obviously will not want to waste any more time.