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While France continues to revere its rich history and independence, French leaders increasingly tie the future of France to the continued development of the European Union (EU). During President Mitterrand's tenure, he stressed the importance of European integration and advocated the ratification of the Maastricht Treaty on European economic and political union, which France's electorate narrowly approved in September 1992.

France has an important aerospace industry (lead by Airbus Industrie) and is the only European power to have its own national space centre. France is also the most energy independent Western country due to heavy investment in nuclear power, which also makes France the smallest producer of carbon dioxide among the seven most industrialised countries in the world. Large tracts of fertile land, the application of modern technology, and EU subsidies have combined to make France the leading agricultural producer in Western Europe.

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.

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.

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.

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.