When Francois Mitterrand won the presidency in 1981, it was a period of political change: The right had been in power since 1958. France was suffering from very high inflation — between 12 and 14 percent. The left embarked on an expansionist economic policy even though the economic environment was recessionary, which caused a big balance-of-payments deficit and led to a devaluation of the franc. It was at that moment, in June 1982, after becoming Finance minister, that I talked about the fight against the deficit and inflation. President Mitterrand authorized an adjustment plan aimed at fighting inflation and excess liquidity in the economy. From that moment, the Germans looked at France in a different light.
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