Mitterrand second term: franc fort, second cohabitation, EMU convergence

Doctrine — stated goals and content

Second-term Mitterrand was defined by the franc fort strategy — pegging the franc to the DM within the EMS — and by Maastricht convergence to prepare monetary union. Economic school: social-democratic with structural concession to rules-based macro discipline (deuxième gauche Rocardienne) and ordoliberal-adjacent monetary policy; industrial policy tempered but not abandoned. Left-right axis: centre-left under Rocard/Bérégovoy 1988-93, centre-right under Balladur cohabitation 1993-95. Key content: (i) Création CSG 1 February 1991 under Rocard — broad flat contribution on all income, foundational fiscal reform; (ii) RMI (Revenu Minimum d'Insertion) Law 1 December 1988 — first French minimum-income scheme; (iii) Privatisations partielles under Bérégovoy and Balladur — Rhône-Poulenc, Elf, BNP privatisation law 19 July 1993; (iv) Maastricht Treaty signed 7 February 1992, French referendum 20 September 1992 ratified 51.04%-48.96% (petit oui); (v) Banque de France independence Law 4 August 1993 (Balladur) ahead of EMU requirements; (vi) Franc fort defended through 1992-1993 EMS crises — franc survived 2 August 1993 15% band widening; (vii) GATT Uruguay Round signed Marrakesh 15 April 1994; (viii) Schengen entry March 1995; (ix) Crédit Lyonnais bailout 1993-1995 — CDR defeasance structure cost ~FF100bn; (x) Balladur youth-employment CIP 1994 withdrawn after student protests March 1994. Popularity: 1988 presidential — Mitterrand defeated Chirac 54.0%-46.0%; legislative 1988 PS+allies 275/577; 1989 European PS 23.6%; 1991 Rocard dismissed; 1992 Maastricht referendum narrow; 1993 legislative catastrophe — PS 17.6% / 67 seats, RPR-UDF 485 seats (cohabitation); Bérégovoy suicide 1 May 1993; 1994 European PS 14.5%; 1995 presidential Jospin 23.3% first round, Chirac won second round. Coherence: high — franc fort + EMU convergence + BdF independence + Maastricht was a coherent package that bound French macro policy into the ordoliberal frame despite PS domestic politics; Balladur cohabitation continued rather than reversed the macro choices, confirming cross-party convergence.