In his slim, controversial book, French historian and economist Nicolas Baverez proclaims the economic and political decline of his homeland. Not surprisingly, French politicians of all stripes are taking requisite offense. The left, which governed the country from 1997 to 2002, faces accusations that it contributed to the decline through misguided social “innovations,” such as the 35-hour work week, introduced precisely as global economic norms demand higher worker productivity. And the right, currently in power, remains paralyzed by fear of social protest and does not dare implement the reforms needed to invigorate the economy.

Critics have lampooned and caricatured Baverez’s arguments, whereas commentators in newspapers such as Le Monde have done little more than highlight the author’s factual errors. (For example, France’s private sector is generally considered far more competitive than the author suggests.) Nevertheless, La France qui tombe (France is Falling Over) is the subject du jour among the social elite as well as France’s popular classes. Indeed, such mournful, soul-searching books are also popular in Germany these days—a regional phenomenon that The Economist calls European “declinism.”

Baverez’s thesis—that France is slow in adapting to new realities borne out of the fall of the Berlin Wall, technological developments, and globalization—is convincing as well as timely. Many of those who voted for French President Jacques Chirac in 2002 are now disappointed that he seems focused on foreign policy grandstanding at the expense of domestic policy and state reforms. The book also resonates with the business community, which has long believed that lazy government officials and public-sector unions stunt progress. “For the moment, we have no...