France is a founding member of the European Union (EU) and one of Europe's most important economies. In 2004, France's gross domestic product (GDP) stood at $2.01 trillion, the second-largest in the EU. Economic growth, though, has been unremarkable in recent years, with real GDP growth of only 2.1% in 2004. The lack of significant economic growth has strained France's public finances, and for the fourth consecutive year, France's budget deficit will exceed the limits of the EU Growth and Stability Pact.
Jacques Chirac has been President of France since 1995, leading a coalition of center-right parties. Since 2002, he has ruled in coordination with Prime Minister Jean-Pierre Raffarin. The two have set upon many reforms of France's economy, including a relaxation of labor market regulations, the privatization of state-owned enterprises, and an overhaul of the public pension scheme. Following the poor showing of the center-right coalition in the March 2004 regional elections, Chirac replaced the heads of several key government ministries and slowed the pace of these reforms. Public employee unions have been the most vocal critics of energy sector liberalization, staging many large demonstrations.
Source: Energy Information Administration