Mitterrand Reforms
On May 11, 1981 Francois Mitterrand became the first socialist Head of State in the history of the Fifth Republic. At a time where many European countries, including Britain and Germany, were becoming politically more conservative France moved toward the left with the surprise victory of Francois Mitterrand. After securing a comfortable majority in the National Assembly, Mitterrand wasted little time instituting his promised reforms. These reforms included increased nationalization of industry and financial institutions, decentralization and inflation of the economy through classic Keynesian economics. Mitterrand also passed laws that reformed education, labor relations as well as the restructuring of radio and television. Although Mitterrand was able to institute these reforms, the success of them varied greatly. Although the majority of French public opinion favored the legislation passed throughout the first years of Mitterrand’s administration, the reforms failed to produce a lasting effect on the French economy, and many of the policies were simply abandoned within a few years. Mitterrand secured the presidency by receiving 51. ... Shortly after the victory Mitterrand appointed Pierre Mauroy as Prime Minister and quickly dissolved the National Assembly. In dissolving the assembly Mitterrand gambled and hoped for a Left majority in the National Assembly after the next elections. ... Although Mitterrand realized the adverse effects of working with the Communist Party in France, more commonly known as the PFC, he quickly renegotiated a traditional agreement for both parties to support the best placed candidate of the Left during the second round of elections. ... ” Prior to the election of 1981 Mitterrand established an electoral platform of “110 proposals.” Mitterrand wasted little time in implementing number twenty-one which read: The public sector will be enlarged by the nationalization of the nine industrial groups foreseen by the Common Program and the Socialist program, and of the steel industry and the armaments and space activities financed by public funds. ... Mitterrand stressed his belief in the need for nationalization in a press conference in September 1981: The nationalizations will give us the tools for the next century. ... In the end Mitterrand opted for full nationalization. ... While the nationalization legislation was being debated and passed in the National Assembly Mitterrand began to focus on other measures to stimulate the economy.