France and the convergence of economic policies in the EMS under the socialist presidency

After ten years of socialist presidency in France, there is a general perception that the incumbents did not live up to the expectations they had created when they were in opposition, in terms of "new economic logic" and "break with capitalism". This paper describes the process that led from an attempt at meeting the election promises during the first two years of President Mitterrand's tenure until the economic crisis that resulted in a policy turnaround in 1983. The analysis is carried out with reference to France's membership in the EMS. It attempts to show how the policies followed in 1981 and 1982 were at odds with the EMS requirement of economic convergence and resulted in the 1983 crisis. Finally it describes the evolution of the French economic policy since 1983, which is marked by an alignment on EEC orthodoxy, and analyses the reasons why France is a strong supporter of European Monetary Union.