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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.

The French Republic or France is a country whose metropolitan territory is located in western Europe, and which is further made up of a collection of overseas islands and territories located in other continents.

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.

After the Allied landings in North Africa (Operation Torch) the German Army occupied southern France as well (Case Anton), leading to the scuttling of the French Fleet at Toulon. After four years of occupation and strife, Allied forces, including Free French Forces, liberated France in 1944.France emerged from World War II to face a series of new problems. After a short period of provisional government initially led by General Charles de Gaulle, a new constitution (October 13, 1946) established the Fourth Republic under a parliamentary form of government controlled by a series of coalitions. The mixed nature of the coalitions and a consequent lack of agreement on measures for dealing with colonial wars in Indochina and Algeria caused successive cabinet crises and changes of government. The war in Indochina ended with French withdrawal in 1954.

Following the seizure of the (then separate) English, Irish and Scottish thrones by the Dutch prince William of Orange in 1688, the anti-French "Grand Alliance" of 1689 inaugurated more than a century of intermittent European conflict in which Britain would play an ever more important role, seeking in particular to keep France out of the Netherlands (the Dutch provinces and the future Belgium, then under Spanish rule).

Starting with the 19th century, the historical evolution of the population in France has been extremely atypical in the Western World. Unlike the rest of Europe, France did not experience a strong population growth in the 19th century and first half of the 20th century. Conversely, it experienced a much stronger growth in the second half of the 20th century than the rest of Europe or indeed its own growth in the previous centuries.

The Palace of Versailles is the prime tourist destination in France followed by the great châteaux of the Loire Valley.

Membership in France's labour unions accounts for less than 10% of the private sector workforce (in 2003, 8.2% of the workforce) and is concentrated in the education, manufacturing, transportation, and heavy industry sectors. Most unions are affiliated with one of the competing national federations, the largest and most powerful of which are the CGT, FO, and CFDT.

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.

The Parliament of France consists in two houses: the National Assembly and the Senate; the Assembly is the pre-eminent body. The National Assembly is the principal legislative body. Its 577 deputies are directly elected for 5-year terms in local majority votes, and all seats are voted on in each election.

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.