Investment Property in France

Politics

Governmental layers

The government of the French republic comprises multiple layers, which penetrate right down to the level of village and community life. At the top is the president, currently Nicolas Sarkozy. The next level is the senate, elected by electoral college through the lower house, and the national assembly which is in turn elected directly by the public.

Local governance

Under the two houses of parliament are the heads of regional, city, town and even village councils. In the past the French government has been known for its centralised structure, though in 2003 the constitution was amended and a number of wide-ranging powers were passed down to the relevant local areas and authorities. The state is also slowly relinquishing control of its business assets, such as France Telecom and Air France, although this is part of its economic structure which is inherent and long-standing.

Party politics

There is no real political party system in operation in France. Parties are formed and disbanded along the lines of loose affiliations in the National Assembly. The only major groupings which remain more or less constant are the extreme left in the Communist Party, and the extreme right in the National Front. The current government is a centre-right grouping, although it is not uncommon for the National Assembly and the president to belong to different parties, and for government to function reasonably well.

Government under Sarkozy

The current president, Nicolas Sarkozy, was elected in May 2007. Sarkozy has pledged to boost economic growth and employment through pro-market reforms, to reduce taxes and to keep the country’s famously powerful trade unions in check.

Government reforms

The government has already paved the way with the September 2007 budget; incentives have been put in place for employers who allow their employees to work overtime, and high earners have been granted tax cuts. Moves by previous leaders to increase the power of employers has prompted large protests among the French people, so it is expected that the road towards change may be a rocky one.

European Union

France has since been central to the development of the European Union. It was a founding member of the European Economic Community (EEC) in 1957, and it was also a founding member of the European Union in 1993, though the French people rejected the proposed ratification of a European constitution in a 2005 referendum. Another of Sarkozy’s promises is to re-negotiate and ratify the treaty, without a referendum.