sectors of industry. And because the dependence
on imported oil had revealed an energy weakness,
France embarked on a massive expansion of its
nuclear-power resources, the most ambitious pro-
gramme in Europe. The national budget ceased
to be planned with large deficits, and continuous
devaluation of the franc was no longer taken as
the easy option. The Barre Plan was starting to
work in 1978 and early 1979, with a favourable
trade balance, growth of industrial output, a
stable exchange rate and reduced inflation, but
the new Middle Eastern turmoil and the second
oil-price rise threw the economy off course.
Inflation and unemployment rose; France was
sliding again into recession. The second dose of
Barre’s medicine of deflation, which caused a
further rise in unemployment, coincided in May
1981 with the presidential elections.
Politically, May 1981 marked a turning point
in French politics: the Socialists finally made the
breakthrough and captured not only the presi-
dency but, a month later, a majority in the
National Assembly elections as well. François
Mitterrand had beaten his rivals to the nomina-
tion and put forward a programme designed to
attract a combined left vote including that of the
communists. He presented a socialist manifesto
that promised to reduce unemployment, extend
nationalisation, raise minimum wages, impose a
tax on wealth and carry through constitutional
reforms to reduce the power of an autocratic pres-
idency, which Giscard had been accused of
exploiting. The communist leader, Georges
Marchais, had contested the first ballot of the
presidential elections, but he had had to drop out
after failing to gain first or second place, where-
upon he had placed his weight behind the
remaining socialist candidate Mitterrand in the
run-off election.
On the right, President Giscard had beaten off
the challenge for the nomination from Jacques
Chirac, who led the substantial Gaullist wing of
the right coalition. In the second ballot, defec-
tions from traditional supporters of the right who
were antagonised by Giscard’s haughty presiden-
tial style, and attracted by Mitterrand’s promise
to reverse the economic austerity programme, as
well as the backing of communist voters, gave
Mitterrand a small but decisive majority over
Giscard, of 15.7 million votes to 14.6 million.
The surprise of the National Assembly elec-
tions which Mitterrand called in June was the
large increase in support for the Socialist Party.
The Communist Party lost further ground. With
communist support in the National Assembly,
Mitterrand commanded a substantial majority.
The spectacular decline of Giscard’s UDF gave
leadership of the combined opposition on the
right to the hard-driving but not always pre-
dictable Chirac, who was distrusted by the UDF.
Thus the right was in considerable disarray.
Mitterrand’s honeymoon lasted just over a
year. To maintain the broad support of the left
and centre, he included in his government adher-
ents from all groups. For the first time since
1947, four communist ministers were brought
into the administration. Michel Rocard as minis-
ter for planning represented the market-oriented
right wing of the Socialist Party and Prime
Minister Pierre Mauroy the traditional socialist
soft left. The government passed legislation to
strengthen civil liberties, a continuation of the
efforts earlier made by Giscard. Mitterrand’s elec-
toral promises of taxes on wealth and the raising
of minimum wages and welfare payments were
fulfilled. Decentralisation, the Deferre Law, gave
more power to elected regional councils, while
the role of the centrally appointed prefects was
reduced. This shifted the balance of control and
local government significantly, not that central
government was ready to give up its overall con-
trolling power. A large-scale nationalisation pro-
gramme was another pillar of Mitterrand’s
rigorous socialist programme. The nationalisation
of leading armaments, metallurgical, electrical,
computer, chemical, pharmaceutical and insur-
ance companies and banks still in private hands
1
THE REVIVAL OF FRANCE 867
National Assembly election, 1981
% Seats
Socialists (PS and MRG) 37.8 286
Communist Party (PC) 16.1 44
Rally for the Republic (RPR) 20.9 83
Union French Democracy (UDF) 19.1 61
