European Integration: The Primary Arena

France's global engagement occurs primarily through European Union membership:

Founding Vision

France co-created European integration: - Schuman Declaration launching cooperation - Common Market establishing free trade - Common Agricultural Policy protecting farmers - Single currency deepening integration - Political union aspirations

This vision reflected both idealism (preventing war) and realism (magnifying French influence through European scale).

Contemporary Reality

EU membership profoundly shapes France's economy: - 59% of exports go to EU partners - 58% of imports come from EU - Free movement of goods, services, capital, people - Common regulations and standards - Shared currency eliminating exchange risk

Laurent Dubois, the CEO making acquisitions, explains the importance:

"The single market gives us scale. We can expand across Europe as easily as across France. When competing with American or Chinese giants, European scale is essential. But we also face competition from lower-cost Eastern European locations."

Franco-German Engine

The relationship with Germany drives European dynamics:

Complementarities: - French political leadership, German economic weight - French nuclear energy, German manufacturing - French services, German industry - Southern orientation versus Eastern focus

Tensions: - Trade imbalances (€15 billion French deficit) - Economic philosophy differences - Energy policy divergence - Fiscal rule disagreements

Recent Cooperation: - Recovery fund agreement during COVID - Battery manufacturing alliance - Defense procurement projects - Green Deal collaboration

Yet Brexit's disruption and Eastern expansion diluted the Franco-German engine's centrality.

European Challenges

France faces dilemmas within Europe:

Competitiveness Pressures: Eastern European countries attract investment with lower costs, forcing French adaptation or protection.

Regulatory Philosophy: France promotes "European sovereignty" through regulation, while others fear hampering competitiveness.

Fiscal Constraints: Stability Pact limits deficits, constraining French state intervention traditions.

Democratic Deficit: EU decisions seem distant from citizens, fueling populist backlash.