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E-MAILFrance Rebecca Marshall for The New York Times

Updated: June 21, 2012

On May 6, 2012, Fran?ois Hollande became the first Socialist to be elected president of France since Fran?ois Mitterrand left office in 1995.

Mr. Hollande campaigned on a kinder, gentler, more inclusive France, but his victory over Nicolas Sarkozy will also be seen as a challenge to the German-dominated policy of economic austerity in the euro zone, which is suffering from recession and record unemployment.

He was sworn in on May 15. At his inauguration, Mr. Hollande, the seventh president of the Fifth Republic, was accompanied by his partner, Val¨¦rie Trierweiler; they will be the first unmarried couple to represent France. On the day of his investiture, Mr. Hollande named Jean-Marc Ayrault, a longtime ally and Germanophile, as his prime minister.

Hours after he was inaugurated, Mr. Hollande flew to Berlin to meet with Germany¡¯s chancellor, Angela Merkel, signaling the importance the new French president is placing on the relationship between the two countries.

The next day, Mr. Hollande?unveiled the 34 members of his new center-left cabinet, leaving out the head of the Socialist Party, Martine Aubry, and naming a onetime party rival, Laurent Fabius, as his foreign minister.?

Mr. Hollande kept to campaign promises for gender parity, at least in terms of numbers, in the cabinet. The justice minister is Christiane Taubira, 60, from French Guiana; Marisol Touraine is minister for social affairs and health. C¨¦cile Duflot, party leader of Europe Ecology ¡ª the Greens ¡ª became housing minister.

Aur¨¦lie Filipetti, 38, a novelist and a legislator, was named culture minister. She had made public an account of being groped by Dominique Strauss-Kahn, the man whom many thought would be the Socialist candidate.

In Dealing With Germany, the Issue of Sovereignty

France has always wanted what Charles de Gaulle called ¡°L¡¯Europe des patries,¡± or the Europe of homelands or nations, which keeps important decisions firmly in the hands of national leaders. And so Mr. Hollande¡¯s negotiations with Mrs. Merkel over the euro crisis have been politically fraught.

Mr. Hollande is arguing for collectivized debt, or so-called euro bonds, and for the European Central Bank to be able to loan directly to banks and to the European bailout funds. He wants the bank to operate more like the United States Federal Reserve, able to act as a lender of last resort to guarantee the debts of euro zone countries.

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In response, Ms. Merkel contends that these steps must be a result of a closer political and economic union, not a precursor to it. Shared debt can work only if there is shared decision-making over budgets, taxes and pensions, she says. That is why she is pushing to move ahead with the long-stalled process of European integration.

But ¡°more Europe¡± would mean a considerable loss of French sovereignty over its national budget and the French financial system, an extraordinarily delicate issue for Mr. Hollande and his Socialist Party, which split badly on a similar issue in 2005.

Any moves toward a deeper union within Europe would require constitutional change. And because Mr. Hollande does not have the necessary three-fifths majority in Parliament, he would face a demand for a public referendum.

Hollande¡¯s Socialists Win Parliamentary Race

On June 10, Mr. Hollande¡¯s Socialist Party and its allies appeared to be on course for a majority in the French National Assembly in the first round of voting for the lower house.

On June 17, in the second round of voting, Mr. Hollande¡¯s party won a solid majority, polling agencies projected, fortifying Mr. Hollande in his push for governments to spend money ¡ª not cut budgets ¡ª to tackle Europe¡¯s economic crisis.

Former President Nicolas Sarkozy¡¯s conservatives, who dominated the outgoing National Assembly, suffered a stinging loss, according to all estimations. Meanwhile, the far-right National Front party was on track to win a small but symbolically important presence in parliament for the first time in years.

Hollande¡¯s Victory: A Rejection of the Unpopular Sarkozy

Mr. Sarkozy¡¯s re-election prospects were weighed down by France¡¯s weak economic condition, but also by public weariness with his hyperenergetic personality.

Mr. Sarkozy left behind a France that had ceded economic leadership of the continent to Germany. He and Germany¡¯s chancellor, Angela Merkel, were so close that they were known as Merkozy, but it became increasingly clear that the country with the more robust economy was calling the shots. Mr. Hollande¡¯s victory was in part due to resentment over the austerity policies the pair forced on the rest of Europe and on France as well.

But Mr. Sarkozy also left behind a muscular foreign policy, as French troops were dispatched to the Ivory Coast and to the air campaign that brought victory to the rebels of Libya.

French voters may not like belt-tightening, but both Mr. Hollande and Mr. Sarkozy had promised to balance the budget in the next five years. The vote was viewed domestically as a rejection of the unpopular Mr. Sarkozy and his relentless effort to appeal to the voters of the far right National Front. Mr. Sarkozy is the first incumbent president to lose since Val¨¦ry Giscard d¡¯Estaing lost to Mr. Mitterrand in 1981.

Mr. Hollande has vowed to win changes to a pact tightening the euro zone¡¯s fiscal rules that was pushed through by Mr. Sarkozy and Mrs. Merkel. But he has also said that his first visit will be to Berlin, and to work closely with his German counterpart.

Days Before the Election, a Bitter Debate

On the evening of May 2, President Sarkozy and Mr. Hollande clashed bitterly in their only televised debate before the May 6 election, with accusations of lying, calumny and arrogance marking a detailed discussion of French economic and social policy.

Mr. Sarkozy could not deliver the clear victory in this debate that many analysts thought he needed to win the election. Mr. Hollande, trying to undermine a reputation for softness and charm, was an aggressive debater, often interrupting Mr. Sarkozy without deference and seemingly even with contempt.

Mr. Hollande attacked Mr. Sarkozy for favoring the rich, for self-satisfaction and for blaming anyone and everything but himself for France¡¯s problems, in particular its low economic growth and high unemployment.

Mr. Sarkozy responded that he had no love for the rich. He attacked Mr. Hollande for his vague economic policies, at one point describing them as ¡°your spending craze.¡±?

Mr. Sarkozy, exasperated at one charge of partisanship, burst out: ¡°That¡¯s a lie, it¡¯s a calumny, you are a little calumniator, saying that.¡± And at one point, he said to Mr. Hollande: ¡°Thank you for your arrogance.¡±

Series of Deadly Shootings Altered the Campaign Tone

In late March, the presidential candidates, including Mr. Sarkozy, suspended their campaigns after a gunman in Toulouse, France, went on a rampage, shooting to death seven people, including three children. The crisis aroused much controversy about whether the deaths were somehow inspired by anti-immigrant political talk.

The suspect, Mohammed Merah, a French national of Algerian descent, allegedly shot three French paratroopers, two Muslims and a black man, in early March. On March 19, outside a Jewish school, he shot a rabbi and two of his children as well as an 8-year-old girl ¡ª the gunman held the girl by her hair, pausing to switch to a 9-millimeter gun when his .45 jammed. Mr. Merah, who claimed he was trained by Al Qaeda, died three days later when he jumped out a window, firing a weapon, during a raid and shootout that ended a 30-hour standoff with the police.

No one was suggesting that the presidential campaign inspired the killer.?But in a period of economic anxiety, high unemployment and concerns about the war in Afghanistan and radical Islam, the far right in Europe has made considerable gains, even in essentially liberal democratic countries like Denmark, Sweden, the Netherlands and France.

In the wake of the attacks, public opinion seemed to tilt ¡ª at least for a little while ¡ª in President Sarkozy¡¯s favor. And with the far-right candidate, Marine Le Pen, calling for a ¡°war on these fundamentalist political religious groups who are killing our children,¡± it was easy for Mr. Sarkozy to take the high road in the sharp political reaction to the crisis.

Despite having built a reputation for toughness on crime and for polarizing comments about immigrants and Islam, Mr. Sarkozy quickly donned the calming, sober cloak of leadership, incarnating France, casting himself as the president who unites and protects, rather than the candidate who divides.

As the issues of the presidential campaign shift from economic anxiety and joblessness to terrorism and crime, Mr. Sarkozy¡¯s candidacy continues to reap the benefits. Acting decisively in a crisis is seen as one of his virtues, and the events in Toulouse allowed him to remind the French of what they like about him, rather than what they dislike.

Ambivalence About the Candidates

The French in general grew tired of Mr. Sarkozy and were anxious about the economy and unemployment, at its highest rate in 12 years. But neither were they passionate about Mr. Hollande, who has never served in government.

It was this ambivalence that Mr. Sarkozy¡¯s campaign sought to exploit by emphasizing the president¡¯s experience, decisiveness and leadership.

During Mr. Hollande¡¯s campaign, he focused on traditional themes of the French left, like social inequality, unemployment, education and pensions. He also proposed that individuals with an annual income of more than ?1 million, or $1.3 million, be taxed at a 75 percent rate. Analysts interpreted the wealth tax proposal as a tactical decision to go for a strong first-round victory for the sake of generating momentum.

Mr. Hollande promised to reverse the legacy of Mr. Sarkozy by raising taxes for corporations, banks and the relatively wealthy, creating 60,000 teaching jobs and bringing the retirement age back down to 60, from 62. He also promised to create 150,000 subsidized jobs in areas of high unemployment, putting his emphasis on better opportunities for the young, and said he wanted to promote more industry in France by creating a kind of public investment bank.

Mr. Sarkozy had announced his candidacy for a second term on Feb. 15, 2012. Aides said that he would have preferred to wait longer to make his announcement and take further advantage of the national platform of the presidency. But with national polls at that time showing that Mr. Hollande would beat him by about 6 percentage points in the first round and by about 14 points in a runoff, Mr. Sarkozy felt that he needed to narrow the gap before it became too solid.

An Early Withdrawal From Afghanistan

Throughout his presidency, Mr. Sarkozy was an active supporter of robust military action. French forces have been fighting alongside the United States in the war against the Taliban in Afghanistan.

But the Taliban is not the only concern for coalition forces. According to a classified report from mid-January 2012, American and other coalition forces were being killed in increasing numbers by the very Afghan soldiers they fought alongside and trained, in attacks motivated by deep-seated animosity between the supposedly allied forces.

Underscoring the danger, on Jan. 20 four French service members were killed and 15 were wounded when a gunman wearing an Afghan National Army uniform turned his weapon on them in Kapisa Province in eastern Afghanistan, according to an Afghan police official. The shootings happened in Tagab District, an area that is viewed as dangerous and dominated by insurgent forces.

The attacks prompted Mr. Sarkozy to suspend French military operations in Afghanistan.

A week later, Mr. Sarkozy announced that France would break with its allies in NATO and accelerate the French withdrawal from Afghanistan, pulling back combat troops a year early, by the end of 2013. Mr. Sarkozy also said that he and Afghanistan¡¯s president, Hamid Karzai, would ask the NATO alliance for a similar speedup of the transfer of primary security responsibilities to Afghan troops.

A senior NATO official said the French decisions were bound to create problems for the alliance because they would give encouragement to the forces fighting the Afghan government, supporting the idea that attacks on NATO and coalition troops would push governments to leave Afghanistan sooner than planned.

But the accelerated French withdrawal has more symbolic than strategic weight. France has the fifth-largest contingent in Afghanistan, with an official count of 3,900 troops. Its forces have been in a largely defensive posture for the past year or longer, focused on preventing any further loss of troops¡¯ lives, according to a NATO official. Since 2001, 82 French troops have been killed in Afghanistan.

Potentially more worrisome is the proposal for NATO to accelerate the transfer to Afghan control by a year, to the end of 2013 rather than 2014. So far only half of the country¡¯s population is in areas handed over to the Afghans. The most troubled areas remain under international forces. In many cases in the less troubled areas, Afghan control is only nominal and coalition forces remain as support.

Credit Rating is Downgraded

The new year delivered evidence of that new world. On Jan. 13, 2012, Standard & Poor¡¯s stripped France?of its sterling credit rating, downgrading it one notch from AAA to AA+.

The ratings agency also cut Portugal¡¯s credit to junk status and downgraded Italy¡¯s debt by two steps in a wide-ranging revision of European countries caught in the euro crisis.

The actions were the strongest signal yet that Europe¡¯s sovereign debt woes were far from over and would pose fresh political challenges for politicians, including Mr. Sarkozy, as they try to stabilize the problem on the Continent, now in its third year.

A downgrade by a single ratings agency would have an immediate, though not devastating, impact on the countries¡¯ ability to borrow money.

The downgrade came at the end of a week in which Mr. Sarkozy and Prime Minister Mario Monti of Italy warned that the crisis could deepen if steps were not taken to stoke growth. Both delivered their messages to Chancellor Angela Merkel in her offices in Berlin, prompting the German leader to admit for the first time that the harsh program of austerity she has been pushing on the euro zone was not a cure-all for the crisis.

Economic Crisis Changes the Political Atmosphere

The loss of the treasured AAA rating was a major political blow to Mr. Sarkozy. Polls showed the main concerns of voters were clear: the size of the French debt, the cost of living, unemployment and general economic insecurity.

It is hard to see how France can quickly extricate itself from its economic morass. It is Europe¡¯s most centralized, state-dominated economy, and it is deeply invested in its opposition to what the French call the Anglo-Saxon economies of Britain and the United States, whose laissez-faire approach they blame for the 2008 financial crisis.

For Mr. Sarkozy and other European leaders, the euro crisis and the heavy sovereign debts that led to it have created a kind of political prison. Normally, faced with high unemployment and stagnant growth, leaders would spend to stimulate the economy, investing in infrastructure, education and job training. Instead, pressed by the markets and his own promises to limit deficits, Mr. Sarkozy had to cut government spending and raise taxes in an election year.

Energizing the Left and the Far Right

As early as mid-January 2012, Fran?ois Hollande, the Socialist candidate, led in the polls. He said that Mr. Sarkozy¡¯s presidency, with higher debt and higher unemployment, had been a disaster, though he provided few details about his own plans.

The economic crisis also mobilized France¡¯s isolationist far right, with Marine Le Pen, the leader of the National Front, running not far behind Mr. Sarkozy in the polls.

The Socialists entered the race a little desperate. While they did progressively well in local elections, they had not elected a president since Fran?ois Mitterrand, who left office more than 15 years ago. Even worse, in 2002, a Socialist candidate, Lionel Jospin, lost in the first round to Jean-Marie Le Pen, then the leader of the far right National Front and the father of Marine Le Pen, handing the election to Jacques Chirac.

Mr. Hollande presented himself as the ¡°anti-Sarkozy,¡± an easygoing and witty ¡°Mr. Normal¡± who eschewed chauffer-driven limousines in favor of his own motorscooter. It was a deliberate contrast to the frenetic Mr. Sarkozy, who is prone to extravagance in his personal tastes and who embroiled the French in his private life more than many people found comfortable.

The son of a doctor and a social worker, Mr. Hollande was educated at France¡¯s most elite law and business schools. Yet his rivals consistently pointed to his inexperience in government. He was the Socialist Party¡¯s leader for a decade until 2008, but he never was a government minister or ran a business. He is a member of Parliament and the president of the regional department of Corr¨¨ze, a rural area best known for its connections to former President Jacques Chirac.

Ms. Le Pen¡¯s National Front, meanwhile, drew much of its strength from a general, and growing, distrust of mainstream politicians. It also fed off of fears among France¡¯s urban working class ¡ª exacerbated by the current economic crisis ¡ª of being displaced by a steady influx of immigrants, largely Muslim, and lower-wage workers in countries like China and India, as well as some of the newer, eastern member states of the European Union.

Ms. Le Pen sought to burnish the image of the National Front, playing down the anti-Semitism that was a hallmark of her father, Jean-Marie Le Pen, and barring ¡°skinheads¡± and those sporting military fatigues or combat boots ¡ª the stereotypical uniform of the far-right youth ¡ª from party rallies.

Yet she continued to attack French Muslims for their supposed unwillingness to assimilate into French society and accept French values, including secularism. She also challenged the right of the E.U. to dictate policy to member states, vowed ¡ª if elected ¡ª to leave the euro zone and restore the French franc, and even to pull out of the U.S.-led NATO military alliance.

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Related: France Travel Guide | Nicolas Sarkozy --> General Information on France
Official Name: French Republic

Capital: Paris (Current local time)

Government Type: Republic
Population: 63.72 million

Area: 220,668 square miles; largest west European country, about four-fifths the size of Texas.

Languages: French, but some rapidly declining regional dialects and languages

Web site: Service-public.fr

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France Navigator

A list of resources about France as selected by researchers and editors of The New York Times.
C.I.A. World Factbook country profile State Department -- history and overview BBC country profile The Economist - forecast and economic data News and online media National Geographic world music guide Advertise on NYTimes.com MOST POPULARE-MailedBloggedSearchedOp-Ed Columnist: The Opportunity GapOp-Ed Contributor: Let¡¯s Draft Our KidsWell: Relief for Joints Besieged by ArthritisGenetic Gamble: A Life-Death Predictor Adds to a Cancer¡¯s StrainIn Dieting, Magic Isn¡¯t a Substitute for ScienceOn the Beach, in the Buff. In Wisconsin?Seeking to Lure the Crowds Again. But Hold the Borscht.Essay: A Blip That Speaks of Our Place in the UniverseSeinfeld on Why ¡®Who¡¯s on First?¡¯ WorkedA Reality Series Finds Silicon Valley CringingGo to Complete List ?Cell Carriers See Uptick in Requests to Aid SurveillanceObama Seeks 2013 Tax Cuts Within LimitsBarney Frank Weds Jim ReadyRomney Mines the Hamptons for Campaign CashMitt's Gray AreasThe Opportunity GapNewspaper Industry Is Running Out of Time to Adapt to Digital FutureBlackBerry Delays to Be Questioned by ShareholdersErnest Borgnine, Tough but Tender Actor, Is Dead at 95Coalition Led by Pro-Western Official Claims Lead in LibyaGo to Complete List ?june 10, 2012chinateacher job billgooglefacebookfood and fadwatony awardsmad menmaureen dowdpaul krugmanGo to Complete List ? Countdown to the Olympics
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