Towards Maastricht?

The opposition won the 1986 general elections. Jacques Chirac moved into Hôtel Matignon and would serve as Prime Minister until May 1988, while François Mitterrand stayed on at the Élysée Palace. War is declared on state dirigisme by Jacques Chirac: “The French economy needs additional freedom if it is to regain its dynamism and create new jobs. Three freedoms fundamental to the smooth running of businesses will be rapidly guaranteed: freedom to set prices, freedom to trade with foreign countries without controls, and greater freedom in human resource management to eliminate obstacles hindering employment.” The attack on state dirigisme continued with the announcement of the privatization of “all companies in the competitive sector.” Jacques Chirac defined “the twin objectives of the government’s economic and social policy: fiscal consolidation and economic liberalization.” The European Monetary System came into force on March 13, 1979. For Roy Jenkins, President of the European Commission, who was at the initiative of the Single European Act, the EMS was a means of preventing competitive devaluations but on April 6, 1986, the franc was devalued by 3%. Nevertheless, the Ordinance of December 1, 1986, on the freedom of pricing and competition chipped away at French dirigisme.