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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.

A growing urban-based Protestant minority (later dubbed Huguenots) faced ever harsher repression under the rule of King Henri II. Renewed Catholic reaction headed by the powerful dukes of Guise culminated in a massacre of Huguenots (1562), starting the first of the French Wars of Religion, during which English, (Scottish?), German and Spanish forces intervened on the side of rival Protestant and Catholic forces.

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).

The capital and most populous city, Paris, is one of the most famous and beautiful cities in the world, and home to numerous historical buildings and monuments.

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.

Traditionally, decision-making in France was highly centralized, with each of France's departments headed by a prefect appointed by the central government. In 1982, the national government passed legislation to decentralize authority by giving a wide range of administrative and fiscal powers to local elected officials. In March 1986, regional councils were directly elected for the first time, and the process of decentralization continues, albeit at a slow pace.