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France is a unitary state. However, the various legal subdivisions, the régions, départements and communes, have various attributions, and the national government is prohibited from intruding into their legal normal operations.

Following the Second World War, and especially the Fifth Republic, France embarked on an ambitious and mostly very successful program of modernization, under state impulse and coordination. This program of dirigisme, mostly implemented by right-wing governments, involved the state control of a minority of the industry, such as transportation, energy and telecommunication infrastructures, as well as various incentives for private corporations to merge or engage in certain projects.

Barely were the Italian Wars over than France was plunged into a domestic crisis with far-reaching consequences. Despite the conclusion of a Concordat between France and the Papacy (1516), granting the crown unrivalled power in senior ecclesiastical appointments, France was deeply affected by the Protestant Reformation's attempt to break the unity of Roman Catholic Europe.

The midpoint of the Third Republic was known as the belle époque in France, a golden time of beauty, innovation, and peace with its European neighbors. New inventions made life easier at all social levels, the cultural scene thrived, cabaret, cancan, and the cinema were born, and art took new forms with Impressionism and Art Nouveau. The glory of this turn-of-the-century period came to an end with the outbreak of World War I.

Legislation passed in 1998 shortened the legal workweek from 39 to 35 hours effective January 1, 2000. A key objective of the legislation is to encourage job creation, for which significant new subsidies will be made available. It is difficult to assess the impact of workweek reduction on growth and jobs since many of the key economic parameters, such as the impact on labour costs and company's ability to reorganize work schedules, will depend on the outcome of labour-management negotiations which should extend through 2000 and beyond. See 35-hour workweek.

France surrendered to Nazi Germany early in World War II (June 24, 1940). Nazi Germany occupied three fifths of France's territory leaving the rest to the new Vichy collaboration government established on July 10, 1940 under Henri Philippe Pétain. Its senior leaders acquiesced in the plunder of French resources, as well as the sending of French forced labor to Nazi Germany; in doing so, they claimed they hoped to preserve at least some small amount of French sovereignty. The Nazi German occupation proved costly, however, as Nazi Germany appropriated a full one-half of France's public sector revenue.