I think you’re all focusing too much on immigration in answering this question. Immigration plays a part, but it is by no means the sole, or even the major part of France’s problem. Britain has plenty of immigrants as well, and my recent experiences there show no signs of malaise.
France is hurting from its decreasing status on the world stage. Granted, people have been saying that since, oh, the end of WWII, but that doesn’t mean it’s any less true. Based on what I’ve read, the French are going through a serious identity crisis. They still think of themselves as a major world power, but they keep getting frustrated in their ambitions. They lead the protest against the war in Iraq, but in the end it didn’t make a whit of difference – who really cares what France thinks?, said the US, and went ahead and went to war anyways. Paris lobbied heavily for the Olympics, but at the last minute London (capital of the dreaded Anglo-Saxons) whisked the glory out from under their feet. The economy is stagnant. The native population is decreasing – and the gap is being filled by immigrants the ethnic French often don’t trust or care for (feelings that will no doubt worsen after the recent riots). Any “separate peace” France thought it bought with the Muslim world for opposing the war in Iraq has been shot to dust by the recent unrest and the protests over the head-scarf ban. There are increasing signs that the beloved welfare state is no longer economically feasible. The Americans and the British are rubbing their stronger economies in France’s nose. Fewer people worldwide are learning French (the governor of Tokyo recently said that France has failed as an international language, and was promptly sued). More people are learning English, particularly in the new EU accession countries – talk about a kick in the pants, them learning English, when Englad is itself only a half-assed EU member! France is the EU, in its own mind. The new members have also weakened France’s votes in EU matters. Agricultural farm subsidies are under attack from all sides. California wines are winning international competitions. French voters rejected the EU constitution (!!!) which was viewed as being too economically liberal. The Polish plumber is out to ruin us! Globalization will destroy everything that makes France France. Crime is up – or perceived to be up, regardless of what the facts may be. France is talking but nobody’s listening.
From what I’ve seen and the people I’ve talked to (and I should note that most of what I’ve written is based on what I’ve read from articles and books, and conversations with people – all of which may ultimately be misleading), it seems to be a particular problem in “Old Europe” – at least parts of it. I can say that all the Germans I’ve talked to in recent months are downright depressed about their country. These were mostly Germans I worked with recently in the UK; all of them told me they felt they had no future in their country, there were no jobs, Germany was heading for the shitter, etc. One girl told me that she would not want to bring children into the world if she were living in Germany! I would protest to these same people that Germany still looks extremely safe and prosperous when I go there (as I’m sure does France; I’ve just been to Germany more recently), and they say yes yes, BUT…and continue with a litany of everything that’s going wrong.
The people from “new Europe” that I’ve known have been on the whole much more optimistic. When I was in the UK I worked with a medley of Poles, Czechs, Slovakians, Latvians, etc., and even though most of them had come to the UK for better opportunities, they still were much more optimistic about their countries than the German expats I worked with. And as I mentioned before, the UK itself seemed to be doing fine as far as I could tell.
What can France do? I dunno, but I suspect they’re going to have to make some major changes to turn things around. Lighten up the welfare state to boost the economy. Take a stronger military stance on the international stage. Restrict immigration if it’s really so threatening to French identity – though if they do that, they’re going to have to find a way to boost the birth rate somehow, because they’re going to need all those little tax-payers. Pump money into their universities (by charging fees perhaps?) and do their best to attract the brightest minds in the world back to France. Be open to innovation. Make even better wine – Californians be damned!