A lot is happening in France now, in both commercial and open source.
Don Dodge helpfully points to a few cool French startups. He says:
Expect to see American VCs visiting Paris this summer.
Ummm Don – maybe not such a great idea. There is noone in Paris in summer. Great trip for VC couples though… 
whats stange is that VC are funding in Isreal too
http://peterdawson.typepad.com/blog/2006/03/vc_funds_going_.html