Neoliberal Structural Reforms in France

Abstract

This chapter deals with the various reforms undertaken by Rueff in postwar France, including the “Pinay/Rueff Report” of 1958, the “Rueff/Armand Report” of 1959, and the unachieved credit system reform of 1962. With de Gaulle's backing, Rueff challenged the Keynesian economic and fiscal management of postwar France and the expansionary central bank policy and credit system represented by the medium-term credit mobilization. At the junctures of the crisis phase, such as the balance of payments crisis and the financial crisis, Rueff advocated austerity measures, including tax increases, subsidy cuts, capital market liberalization, trade liberalization, and the devaluation of the franc, and with the exception of credit system reform, he achieved great success. It is also noted that Rueff sought the cooperation of reformist trade unions in implementing these policies.