The core executive and the Bank of France (1981-97)
The first part of this chapter examines the troubled relationship between the Bank and the core executive from 1981-6. The second part discusses the proposed reform of the Bank in 1986 and considers why this reform was shelved. The third part then examines the growing consensus on the need for greater Bank independence that emerged in the period from 1988-93. The fourth part considers in some detail the preparation and passage of the 1993 reform. The final part analyses the relationship between the Bank and the core executive from 1994-7.
In 1981 the Socialist party assumed office for the first time during the Fifth Republic. François Mitterrand was elected President of the Republic and the subsequent National Assembly elections returned a socialist majority. The alternation in power had profound consequences for the relationship