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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.

The constitution does not contain a bill of rights in itself, but its preamble mentions that France should follow the principles of the Declaration of the Rights of Man and of the Citizen, as well as those of the preamble to the constitution of the Fourth Republic. This has been judged to imply that the principles laid in those texts had constitutional value, and that legislation infringing on those principles should be found unconstitutional.

Traditionally a predominantly Roman Catholic country, with anticlerical leanings, France is since the 1970s a very secular country. Freedom of religion is a constitutional right, as reflected by the Declaration of the Rights of Man and of the Citizen. The dominant concept of the relationships between the public sphere and religions is that of laïcité, which implies that the government does not intervene in religious dogma, and that religions should refrain from intervening in policy-making. Tensions occasionally erupt about the alleged or real behaviour of some part of the Muslim minority, or about alleged or real discrimination against that community; see Islam in France.

During the reign of Louis XIV (1643-1715), France was the dominant power in Europe, aided by the diplomacy of Richelieu's successor (1642-1661) Cardinal Mazarin and the economic policies (1661-1683) of Colbert. Renewed war (1667-1668 and 1672-1678) brought further territorial gains (Artois and western Flanders and the free county of Burgundy, left to the Empire in 1482), but at the cost of the increasingly concerted opposition of rival powers.

France is a founding member of the European Union, and its largest member state with respect to land area. France is also a founding member of NATO and the UN, and a permanent member of the UN Security Council. It is one of only seven acknowledged nuclear powers in existence.

The national government of France is divided into an executive branch, a legislative branch and a judiciary branch. The President of France has some direct executive power but most of the formal power resides in his appointee the Prime Minister of France, the choice of which in practice has to be approved by the French National Assembly, the lower house of Parliament (see below for a discussion of the division of power between the President and Prime Minister). Parliament passes statutes and votes the budget; it also controls the action of the executive through questioning and enquiry commissions. The constitutionality of the statutes is checked by the Constitutional Council. Finally, the independent judiciary is divided into the judicial branch (dealing with civil and criminal law) and the administrative branch (dealing with recourses against executive decisions), each with their own independent supreme court. In addition, the French government comprises various bodies checking against possible abuses of power and independant agencies.

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 May 1958 seizure of power in Algiers by French army units and French settlers opposed to concessions in the face of Arab nationalist insurrection led to the fall of the French government and a presidential invitation to de Gaulle to form an emergency government to forestall the threat of civil war. Swiftly replacing the existing constitution with one strengthening the powers of the presidency, he became the elected president in December of that year, inaugurating France's Fifth Republic.

Dirigisme came to be highly contested in the 1980s, with complaints of bureaucracy and lack of reactivity to new challenges. As a result the government largely retreated from economic intervention; Dirigisme has now essentially receded. Despite significant reform and privatization over the past 15 years, the government continues to control a large share of economic activity: Government spending, at 53% of GDP in 2000, is the highest in the G-7. Labour conditions and wages are highly regulated. The government continues to own shares in corporations in a range of sectors, including banking, energy production and distribution, automobiles, transportation, and telecommunications.

While the main territory of France (la métropole) is located in Western Europe, France is also constituted from territories in North America, the Caribbean, South America, the western and southern Indian Ocean, the northern and southern Pacific Ocean, and Antarctica (sovereignty claims in Antarctica are not recognised by most countries).

As France is the most popular touristic country in the world, tourism is a significant contributor to the French Economy. In the 1960s the government heavily promoted the development of skiing in the French Alps through the development of new high level resorts including some of the World's most extensive.

A popular referendum approved the constitution of the French Fifth Republic in 1958, greatly strengthening the authority of the presidency and the executive in relation to Parliament. The French constitution establishes a semi-presidential system, where the President of France has a strong influence, but where, ultimately, the deciding factor is the majority of the French National Assembly.