On May 6, 2007, French voters chose the Gaullist Nicolas Sarkozy to be President of France. In a contentious campaign, he defeated the Socialist Ségolène Royal by a margin of 53.1% to 46.9%. Sarkozy assumed power on May 16. Sarkozy represents a younger generation of leaders at a time when a majority of the French public believes their country is in decline, in part due to enduring low economic growth and high unemployment, in part to an apparent diminishing influence in guiding the course of the European Union (EU). The second round of the presidential elections saw a near-record turnout of 84.9% in a campaign that was closely watched by voters. Sarkozy succeeded in capturing a majority of both the women's vote and the vote of those over 60. He pledged to lower persistent unemployment, deal decisively with issues relating to immigrants, reduce the government bureaucracy, and reform the economy. His Gaullist predecessor, Jacques Chirac, had made similar promises but proved unable to implement effective change. The first round of the elections eliminated extremists on the right and the left. Sarkozy finished with 31.17% of the vote, followed by Royal with 25.87%. The third-place finisher, François Bayrou of the centrist Union for French Democracy (UDF), finished third with 18.57% of the vote, triple the support that he received in the 2002 presidential elections. The racist and xenophobic candidate, Jean-Marie Le Pen, gained 10.44% of the vote, a sharp drop form this showing in 2002. Royal courted UDF voters in the second round, but her appeal did not succeed, as they split their vote. The two-round legislative elections, completed on June 17, gave Sarkozy's party, the Union for a Popular Movement (UMP), a solid but reduced majority. In the 577-seat National Assembly, the UMP now holds 313 seats, and is supported by 32 deputies from other parties. The Socialist Party holds 227 seats. Since 1981, France has had only two presidents, the Socialist François Mitterrand and the Gaullist Jacques Chirac, each a formidable political figure who dominated his respective party. In 2002, presidential terms were shortened from seven years to five years; there are no limits on the number of terms a president may serve. Legislative elections now follow the presidential elections by a month. Under the Fifth Republic (1958-present), France has had a strong presidential system, significantly different from many European parliamentary systems. Fifth Republic structures were meant to avoid the ever-changing parliamentary governments of the Fourth Republic (1946-1958), when the country needed but rarely found strong leadership after the Second World War and during the Algerian war for independence (1954-1962), a conflict that led to instability and violence in France as well as in Algeria. The President is elected by a national vote and enjoys clear command of national security and the armed forces. Although the President appoints a prime minister who names a cabinet, it is the President who shapes all major policy initiatives and is the unquestioned political leader of the government. Compared with the United States, France is a highly centralized country, not only in political authority but also in economic structures. Although some industries have been privatized in recent years, the state continues to control or to influence many key industries to a degree unknown in the United States. Even the country's main road and rail systems run through or emanate from Paris. Important domestic and foreign policy issues were at play in the campaign. Integration of the large Muslim minority, now nearly 10% of the population and mostly North African in origin, has been a focal point of discussion for a decade, but most pointedly since the attacks of September 11, 2001, on the United States and riots in the suburbs, where most Muslims live, of several major French cities in 2005. Control of immigration, was another key electoral issue. A related issue was high unemployment, plaguing the country for years. In foreign policy, the unstable Middle East and the possible rise of a nuclear-armed Iran considerable attention from the key candidates. France's role in the European Union was also a question of importance to the population. Sarkozy's campaign was successful because he presented a clear program of reform to the electorate and appealed to National Front voters concerned about immigration, crime, and the economy. He also effectively managed his party's militants, who helped to bring his message to the population. Royal lost because she at times seemed uncertain of her message, because she sometimes cast herself defensively, as the person to prevent Sarkozy from gaining power, and because her own party was divided over her candidacy. Relations between the Bush Administration and France have been difficult since the run-up to the U.S. invasion of Iraq in March 2003. While the United States and France cooperate closely on some issues, such as counterterrorism and instability in Lebanon, President Chirac strongly opposed the invasion of Iraq and raised international criticism of Administration policy, leading to sharp rejoinders from Administration officials and some Members of Congress. Officials in both countries are hoping that the 2007 French elections will lead to an improved bilateral atmosphere on several issues, some of which are discussed in this report. France has been an important contributor to a range of NATO and EU missions, and an improved relationship could relieve strain on U.S. strategic resources. Over the past year, polls, several books, and media commentary have indicated a widespread view in France that the country is enduring a decline in economic, political, and intellectual vigor and influence. GDP growth was only 2% in 2006, and unemployment is now 8.5%, a percentage point above the eurozone average. In a May 2005 referendum, French voters failed to approve a proposed new EU treaty, commonly referred to as the EU constitution, a development that, even if many voters were expressing displeasure primarily with their government, reduced French leverage to demonstrate leadership in the Union. As a result, there are calls for a "renewal" from both the right and the left. The Gaullist Party and the Socialist Party nominated their candidates from within the party structures. There are no national primaries in France. For most of the Fifth Republic, individuals who emerged as a party's candidate rose through the ranks and were the consensus choice of those who ran the party structures. The election season of 2006-2007 unfolded somewhat differently. Nicolas Sarkozy is a controversial figure in the Gaullist Party. The son of a Hungarian immigrant, Sarkozy was helped through the ranks by Chirac. He is not a graduate of the National School of Administration (ENA), the elite institution that provides France with many of its most important leaders. He broke with Chirac in the 1995 presidential elections when he endorsed a Chirac rival, who lost. Nonetheless, his forceful, aggressive style generated a political following. He became head of the Union for a Popular Movement (UMP), the umbrella party centered around the Gaullists, and built a reputation for being tough on immigration and crime as France's interior minister. He prevailed as the party's choice for the presidency, bolstered by the faltering image of his principal rival, Prime Minister Dominique de Villepin, politically damaged by an alleged scandal and an effort to loosen a law to allow the dismissal of young workers. At a late moment, Chirac gave Sarkozy a tepid endorsement. Sarkozy is part of a new generation of French leaders. Although supportive of the European Union, he is less wedded to it than earlier and older post-war French leaders. He is also part of a generation of leaders who were too young to be formed by the massive national strike of 1968 that shut down the country in a call for reform. After the first round of elections, he criticized the heirs of 1968 by saying that they had destroyed the values of hierarchy in France. His opponents on the left quickly condemned his remarks as an attack on the French "social model," which has had a strong safety net in place for nearly 40 years. Sarkozy is a well-known figure in France. As an important political lieutenant of President Chirac, he helped to continue the UMP as a major force in French politics. He has a clear persona among the voters, who see him as decisive, hard-working, and emphatic in his views. He cast himself as an "outsider" by calling for a "rupture" with past practices in leading the country. At the same time, those who have worked closely with him describe him as a "deal maker," implying a practicality not always publicly visible. As Interior Minister in 2005, Sarkozy referred to young rioters in the suburbs of several major French cities as "scum" and said they should be washed away "with a power hose." Critics of such language contend that the rioters were largely economically disadvantaged and were often North African Muslim youth ostracized by elements of French society. In 2006 he promised to deport more illegal immigrants than were deported in 2005, a pledge he carried out. At the same time, he urged Muslim youth to become more involved in French society and promised to begin a program of "positive discrimination" to ensure their entry into public institutions and the job market as gateways into broader society. The announcement of his election brought young people into the streets in several cities, with nearly 400 cars burned the night of May 7 and several hundred people taken by the police for questioning. Sarkozy, 52, began his campaign for the presidency in earnest in late 2006 and at first sought to build a more moderate image. The UMP nominated him in January 2007. In a speech before the party faithful, he said that he had changed. He recounted difficult moments in his personal life and said that, because of certain failures, he had become a milder, more inclusive leader.