During the first half-dozen years of the 1980s, the French economic model has been characterized by a rather high inflation and by currency devaluation, while growth stalled and unemployment increased. This came as a result of François Mitterrand’s effort to reignite the economy through an expansive (and expensive) fiscal and monetary policy. With the socialist experiment’s failure:
• French companies relocated,
• Unemployment rose, and
• The French current account balance deteriorated.
The economic disasters which accompanied the first years of his presidency taught that a debt-ridden France is in no position to dictate to Germany. At best it can influence, but only if his government gains credibility ...