From 1986 to 1988, Jacques Chirac converted to economic liberalism

When Jacques Chirac accesses power in 1986, the "conservative and liberal revolution" reigns across the Atlantic and across the Channel.At the edge of the 1980s, Margaret Thatcher and Ronald Reagan conquered power respectively in the United Kingdom and the United States with an ultra-liberal economic program, then methodically applied.

Become Prime Minister in 1986, Jacques Chirac composed a government of cohabitation (with François Mitterrand).A supporter of an interventionist and social Gaullism, the president of the RPR of the time surrounds himself with politicians keen on liberalism.Édouard Balladur, Alain Madelin and Gérard Longuet convinced him to turn his back on social Gaullism and in turn apply a policy "releasing" the French economy of the grip of the state.

Privatizations orchestrated by Édouard Balladur

The program that enabled Jacques Chirac and its right -wing majority (RPR, republican party) to win the legislative elections of March 1986 included an unprecedented wave, in France, of privatization of public enterprises.From 1986 to 1988, they were orchestrated by Édouard Balladur, the only Minister of State for the Government, in charge of the economy and finance.Some privatized companies had been nationalized at the end of the Second World War (Société Générale, Matra, Havas).Others had been by the socialists after 1981 (Paribas, CCF, CGE, Saint-Gobain).

Finally, this program provided for the privatization of one of the three public television channels of the time, TF1.The Bouygues group will buy 50% of the capital put up for sale for 3 billion francs of the time (around 768 million euros, taking into account inflation), taking it from the nose and the beard of the Hachette group by Jean-Luc Lagardère, yet reputed to be favorite.

Economic dismissal: more prior authorization

These privatizations allowed the State to sell for an amount oscillating, according to sources, between 70.5 and 100 billion francs (value 1999, according to the 2001 edition of the State of France - La Découverte), that isFrom 18 to 26 billion euros (taking into account inflation).

It was also the government of Jacques Chirac (from 1986 to 1988) which suppressed administrative and prior authorization (by labor inspectorate) for economic layoffs and major fortunes.He was restored in 1989 by the socialist government of Michel Rocard.

Free fixing of prices established by an order

Jacques Chirac also voted an order in December 1986 which established the total price fixing of prices for professionals and businesses, award which had been subject to control since 1945. Now, prices in France had to be "freely determined by thecompetition game ", under the supervision of the competition council created by the same order.

This reform releasing prices marked a break in the economic history of France.However, it has been largely amended by various subsequent laws, including questionable commercial practices for large distribution vis-à-vis its suppliers.

Not only since 1986, the pressure of the purchasing power plants has not released and the rear margins have not disappeared, but the prices, if they have increased less after this reform, did notdropped in France over the long period.This trend has reinforced the impression, accentuated since the arrival of the euro, that in France, most consumer products are on average more expensive than in comparable European countries like Germany or Spain.