France's Domestic and Foreign Challenges

France faces both domestic and international pressure following the French National Assembly's approval of the European Union's fiscal compact treaty Oct. 9. At home, President Francoise Hollande wants to reduce France's budget deficit while dealing with rising labor costs and increasing unemployment. However, his plans for doing so are unpopular among the French population and even within the government. Meanwhile, Hollande is trying to maintain good relations with Germany despite probable differences over the 2014-2020 EU budget and their differing long-term visions of the European Union. These issues will drive France's domestic and foreign policies for the remainder of 2012 and most of 2013.