During the reign of Louis XIV (1643-1715), France was the dominant power in Europe. But overly ambitious projects and military campaigns of Louis and his successors led to chronic financial problems in the 18th century. Deteriorating economic conditions and popular resentment against the complicated system of privileges granted the nobility and clerics were among the principal causes of the French Revolution (1789-94). Although the revolutionaries advocated republican and egalitarian principles of government, France reverted to forms of absolute rule or constitutional monarchy four times--the Empire of Napoleon, the Restoration of Louis XVIII, the reign of Louis-Philippe, and the Second Empire of Napoleon III. After the Franco-Prussian War (1870), the Third Republic was established and lasted until the military defeat of 1940.

World War I (1914-18) brought great losses of troops and materiel. In the 1920s, France established an elaborate system of border defenses (the Maginot Line) and alliances to offset resurgent German strength. France was defeated early in World War II, however, and was occupied in June 1940. The German victory left the French groping for a new policy and new leadership suited to the circumstances. On July 10, 1940, the Vichy government was established. Its senior leaders acquiesced in the plunder of French resources, as well as the sending of French forced labor to Germany; in doing so, they claimed they hoped to preserve at least some small amount of French sovereignty.

The German occupation proved quite costly, however, as a full one-half of France's public sector revenue was appropriated by Germany. After 4 years of occupation and strife, Allied forces liberated France in 1944. A bitter legacy carries over to the present day.

France emerged from World War II to face a series of new problems. After a short period of provisional government initially led by Gen. Charles de Gaulle, the Fourth Republic was set up by a new constitution and established as 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 Indochina and Algeria caused successive cabinet crises and changes of government.

Finally, on May 13, 1958, the government structure collapsed as a result of the tremendous opposing pressures generated in the divisive Algerian issue. A threatened coup led the Parliament to call on General de Gaulle to head the government and prevent civil war. He became prime minister in June 1958 (at the beginning of the Fifth Republic) and was elected president in December of that year.

Seven years later, in an occasion marking the first time in the 20th century that the people of France went to the polls to elect a president by direct ballot, de Gaulle won re-election with a 55% share of the vote, defeating FranÁois Mitterrand. In April 1969, President de Gaulle's government conducted a national referendum on the creation of 21 regions with limited political powers. The government's proposals were defeated, and de Gaulle subsequently resigned. Succeeding him as president of France have been Gaullist Georges Pompidou (1969-74), Independent Republican Valery Giscard d'Estaing (1974-81), Socialist FranÁois Mitterrand (1981-95), and neo-Gaullist Jacques Chirac (first elected in spring 1995 and reelected in 2002).

While France continues to revere its rich history and independence, French leaders are increasingly tying the future of France to the continued development of the European Union. During his tenure, President Mitterrand 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. President Jacques Chirac assumed office May 17, 1995, after a campaign focused on the need to combat France's stubbornly high unemployment rate and growing "incomes gap."

The center of domestic attention soon shifted, however, to the economic reform and belt-tightening measures required for France to meet the criteria for Economic and Monetary Union (EMU) laid out by the Maastricht Treaty. In late 1995, France experienced its worst labor unrest in at least a decade, as employees protested government cutbacks. On the foreign and security policy front, Chirac took a more assertive approach to protecting French peacekeepers in the former Yugoslavia and helped promote the peace accords negotiated in Dayton and signed in Paris in December 1995. The French have been one of the strongest supporters of North Atlantic Treaty Organization (NATO) and European Union (EU) policy in Kosovo and the Balkans. In the aftermath of the September 11, 2001 attacks in the U.S., France has played a central role in the war on terrorism. French forces participate in Operation Enduring Freedom and in the International Security Assistance Force (ISAF) for Afghanistan. France did not join the coalition that liberated Iraq in 2003. Notwithstanding the ensuing difficulties in U.S.-France relations, cooperation between the U.S. and France in the intelligence and law enforcement dimensions of the war on terror remained excellent.