Navigating Global Integration

France's economy has always been internationally connected, but the nature of this connection has transformed dramatically. From a colonial power managing captive markets to a founding member of the European Union navigating global competition, France has had to constantly adapt its economic model.

European integration fundamentally reshaped France's economy. The Common Agricultural Policy initially protected French farmers while opening vast markets for French products. The single currency eliminated exchange rate risks but also removed monetary policy tools. Today, nearly 60% of French trade occurs within the EU, making European economic governance as important as national policy.

Globalization presents both opportunities and challenges. French luxury brands from Louis Vuitton to Hermès dominate global markets, while Airbus competes successfully with Boeing. Yet globalization also means competition from lower-wage countries, pressure on traditional industries, and concerns about economic sovereignty that fuel political debates.