french budget increase 1980?

[unmerged(23351)]

i am writing a work for my socio-economy history course. i am wondering about the dramatic increase in spending money in 1980 (1027 billion francs), in 1981 (757 billion francs). has anyone an idea, why they did spend so much more money in 1980?
i do not have a clue.

thx in advance for helping, if you need an expert for austrian history, i will help you if you do need help

 

[unmerged(3420)]

i am writing a work for my socio-economy history course. i am wondering about the dramatic increase in spending money in 1980 (1027 billion francs), in 1981 (757 billion francs). has anyone an idea, why they did spend so much more money in 1980?
i do not have a clue.

thx in advance for helping, if you need an expert for austrian history, i will help you if you do need help

I think that Socialist leader Francois Mitterand was elected President of France at about that time, and he embarked on a major program of reflation and social spending. His efforts led to inflation, a collapsing franc, and huge budget deficits; within two years, he was forced to reign back on all the social spending.

 

[unmerged(10426)]

Mitterand was elected in 1981. So that doesn't account for the spending.

 

[unmerged(23351)]

but what could be the reason? did they have to repay some debt? or did they buy anything in particular?

 

[unmerged(2920)]

i bet that you would have more answer in the french history forum

 

[Yasko]

but what could be the reason? did they have to repay some debt? or did they buy anything in particular?

They wanted to get out of recession with government spending. The problem was that Germany had opposite policy and took advantage of the French spending and sold even more goods to the french.

 

[Grosshaus]

Didn´t they nationalize some companies at that time?

 

[crash63]

The France déficit in 1980 was approximately 90.8 billion € (less than 600 billion francs). Your deficit in 1980 is wrong.

Go in french history forum, you have a graph.

 

[unmerged(23351)]

The France déficit in 1980 was approximately 90.8 billion € (less than 600 billion francs). Your deficit in 1980 is wrong.

Go in french history forum, you have a graph.

hello, i got the thing out of:
Stefan Grüner, Andreas Wirsching, Frankreich: Daten, Fakten, Dokumente, Tübingen 2003. p.124/25

 

[crash63]

I haven't seen anything about this on french sites.

It's a bit strange.