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The Radical-Socialist Party, founded in 1901 (four years before the socialist French Section of the Workers' International (SFIO) which unified the various socialist currents), remained the most important party of the Third Republic starting at the end of the 19th century. The same year, followers of Léon Gambetta, such as Raymond Poincaré, who would become President of the Council in the 1920s, created the Democratic Republican Alliance (ARD), which became the main center-right party after World War I and the parliamentary disappearance of monarchists and Bonapartists.

Governments during the Third Republic collapsed with regularity, rarely lasting more than a couple of months, as radicals, socialists, liberals, conservatives, republicans and monarchists all fought for control. However others argue that the collapse of governments were a minor side effect of the Republic lacking strong political parties, resulting in coalitions of many parties that routinely lost and gained a few allies. Consequently the change of governments could be seen as little more than a series of ministerial reshuffles, with many individuals carrying forward from one government to the next, often in the same posts.

In 1905 the government introduced the law on the separation of Church and State, heavily supported by Emile Combes, who had been strictly enforcing the 1901 voluntary association law and the 1904 law on religious congregations' freedom of teaching (more than 2,500 private teaching establishments were by then closed by the State, causing bitter opposition from the Catholic and conservative population).

There were two major scandals that rocked the Third Republic during the 1890s. One scandal entailed the Panama scandals in 1892. Due to widespread corruption, the company designated to spearhead the massive project went bankrupt. Approximately 300 million dollars were lost in the financial fiasco[citation needed]. Adjusted for inflation, that loss would have amounted to around six billion dollars by today's account[citation needed]. The role of French politicians in the scandal severely undermined the ability of the French government to regulate the enormous power of the bourgeoisie.

The Dreyfus Affair was another, famous scandal, which involved the French military. In 1894, a Jewish artillery officer, Alfred Dreyfus, was arrested on charges relating to conspiracy and espionage. Allegedly, Dreyfus had handed over important military documents discussing the designs of a new French artillery piece to a German military attaché named Max von Schwartzkoppen. In 1898, writer Emile Zola published an article entitled J'Accuse. ..! (I accuse. ..!). The article alleged an anti-Semitic conspiracy in the highest ranks of the military to scapegoat Dreyfus, tacitly supported by the government and the Catholic Church. The real culprit was found two years later to be a high-ranking military officer and aristocrat, Ferdinand Walsin Esterhazy, but only in 1906 was Dreyfus given a formal pardon and freed after serving twelve years behind bars.

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