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Government economic policy aims to promote investment and domestic growth in a stable fiscal and monetary environment. Creating jobs and reducing the high unemployment rate has been a top priority. The Government of France has successfully reduced a double-digit unemployment rate in excess of 10% to 8%-9%, recently. France joined 10 other European Union countries in adopting the euro as its currency in January 1999. Henceforth, monetary policy will be set by the European Central Bank in Frankfurt.

Louis XVI's reign (1774-1792) saw a temporary revival of French fortunes through intervention (1778-1783) in support of Britain's rebel American colonies. But the over-ambitious projects and military campaigns the past century had produced chronic financial problems. Deteriorating economic conditions, popular resentment against the complicated system of privileges granted the nobility and clerics, and a lack of alternate avenues for change were among the principal causes of the French Revolution. This led to the formation of the First Republic on September 21, 1792.

One of the most important events during the Third Republic was the Dreyfus Affair, a political scandal that highlighted the dangerous levels of Anti-semitism and clerical power in the higher reaches of the French political and military systems, towards the end of the 19th century, which ultimately led to the speedy passing of the 1905 law on laïcité, split the whole nation and is referred to in most of the issues in France since that date.

Metropolitan France extends from the Mediterranean Sea to the North Sea, and from the Rhine River to the Atlantic Ocean; it is bordered by the United Kingdom, Belgium, Luxembourg, Germany, Switzerland, Italy, Monaco, Andorra, and Spain. The French Republic also shares land borders overseas with Brazil, Suriname, and the Netherlands.

Under the constitution, the president was originally elected for a seven year term; this has been reduced to five years. The president names the prime minister, presides over the cabinet, commands the armed forces, and concludes treaties. The president may submit questions to national referenda and can dissolve the National Assembly. In certain emergencies, the president may assume special, comprehensive powers.

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.

In its Constitution, France declares itself to be an indivisible, laïque (roughly, "secular") democratic and social republic. France's constitution enacts a separation of powers as well as the respect for a number of constitutional rights.

The National Assembly may cause the resignation of the executive cabinet by voting a motion of censure. For this reason, the prime minister and his cabinet are necessarily from the dominant party or coalition in the assembly. In the case of a president and assembly from opposing parties, this leads to the situation known as cohabitation. While motions of censure are periodically proposed by the opposition following government actions that it deems highly inappropriate, they are purely rhetorical; party discipline ensures that, throughout a parliamentary term, the government is never overthrown by the Assembly.