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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.

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.

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.

Due to its numerous overseas departments and territories scattered on all oceans of the planet, France possesses the second-largest exclusive economic zone (EEZ) in the world, covering 11,035,000 km² (4,260,000 sq. miles), just behind the EEZ of the United States (11,351,000 km² / 4,383,000 sq. miles), but ahead of the EEZ of Australia (8,232,000 km² / 3,178,000 sq. miles). According to a different calculation cited by the Pew Research Center, the EEZ of France would be 10,084,201 km² (3,893,532 sq. miles), behind the United States (12,174,629 km² / 4,700,651 sq. miles), but ahead of Australia (8,980,568 km² / 3,467,416 sq. miles) and Russia (7,566,673 km² / 2,921,508 sq. miles).

Today, France is at the forefront of European states seeking to exploit the momentum of monetary union to advance the creation of a more unified and capable European political, defence and security apparatus.

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 midpoint of the Third Republic was known as the belle époque in France, a golden time of beauty, innovation, and peace with its European neighbors. New inventions made life easier at all social levels, the cultural scene thrived, cabaret, cancan, and the cinema were born, and art took new forms with Impressionism and Art Nouveau. The glory of this turn-of-the-century period came to an end with the outbreak of World War I.

After the war of 1689-1697 gained France only Haiti (lost to a slave revolt a century later), the War of the Spanish Succession (1701-1713) ended with the undoing of Louis's dreams of a Franco-Spanish Bourbon empire: the two conflicts strained French resources already weakened by disastrous harvests in the 1690s and in 1709, as well as by the revocation (1685) of the Edict of Nantes and the consequent loss of Huguenot support and manpower.