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.
The May 1958 seizure of power in Algiers by French army units and French settlers opposed to concessions in the face of Arab nationalist insurrection led to the fall of the French government and a presidential invitation to de Gaulle to form an emergency government to forestall the threat of civil war. Swiftly replacing the existing constitution with one strengthening the powers of the presidency, he became the elected president in December of that year, inaugurating France's Fifth Republic.
Under the constitution, the president was originally elected for a seven year term; this has been reduced to five years. The president names the prime minister, presides over the cabinet, commands the armed forces, and concludes treaties. The president may submit questions to national referenda and can dissolve the National Assembly. In certain emergencies, the president may assume special, comprehensive powers.
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.
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).
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.
France is the European Union's leading agricultural producer, accounting for about one-third of all agricultural land within the EU. Northern France is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region. Beef production is located in central France, while the production of fruits, vegetables, and wine ranges from central to southern France. France is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. The implementation of the Common Agricultural Policy (CAP) and the Uruguay Round of the GATT Agreement have resulted in reforms in the agricultural sector of the economy.
France's founding membership in the European Union largely defines France's current foreign policy. The French Republic is furthermore a member of the Secretariat of the Pacific Community (SPC) and of the Indian Ocean Commission (COI), and an associate member of the Association of Caribbean States (ACS). France is also a leading member or the International Organisation of Francophonie (OIF) which gathers 51 fully or partly French-speaking countries.
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.
Citizens from all parts of France, including overseas possessions, vote in national elections (presidential, legislative) and are represented to the Senate. Contrary to other countries such as the United States, there is not a two-tiered system whereby some parts of the territory have the right to vote in national elections, and some do not.
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.
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.
France possesses a large variety of landscapes, ranging from coastal plains in the north and west, where France borders the North Sea and the Atlantic Ocean, to the mountain ranges in the south (the Pyrenees) and the southeast (the Alps), of which the latter contains the highest point of Europe, the Mont Blanc at 4810 m.
In its Constitution, France declares itself to be an indivisible, laïque (roughly, "secular") democratic and social republic. France's constitution enacts a separation of powers as well as the respect for a number of constitutional rights.
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.