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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.

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.

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).

Following the Second World War, and especially the Fifth Republic, France embarked on an ambitious and mostly very successful program of modernization, under state impulse and coordination. This program of dirigisme, mostly implemented by right-wing governments, involved the state control of a minority of the industry, such as transportation, energy and telecommunication infrastructures, as well as various incentives for private corporations to merge or engage in certain projects.

Although ultimately a victor in World Wars I and II, France - much like Britain - suffered extensive losses in its empire, comparative economic status, working population, and status as a dominant nation-state. Since 1958, it has constructed a semi-presidential democracy (known as the Fifth Republic) that has not succumbed to the instabilities experienced in earlier, more parliamentary regimes.

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.

Statute legislation may be proposed by the government (i.e. the council of ministers), or by members of parliament. In the first case, it is a projet de loi, in the latter case, a proposition de loi. All projets de loi must undergo compulsory advisory review by the Conseil d'État before being submitted to parliament. Propositions de loi cannot increase the financial load of the state without providing for funding.

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

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.