Confessions of a President

A mea culpa from Mitterrand on economic policy

For months, President Franc,ois Mitterrand has come under mounting criticism for his handling of the economy. He has been berated for increased government spending and successive devaluations of the franc. Fellow Socialists have groaned about his stringent austerity program, designed to bring the soaring foreign trade deficit under control and to curb France's 8.5% inflation. Students, shopkeepers and even policemen took to the streets last spring to vent their displeasure with the policies of his two-year-old government. His approval rating has plunged from 50% to 35% in the past year. Last week the President endured another barrage of criticism, this time self-inflicted.

In a minor left-wing Roman Catholic weekly, Temoignage Chretien (Christian Testimony, circ. 70,000), the President is quoted as giving a startlingly frank analysis of his economic missteps. Philippe Bauchard, the respected financial editor of the Paris-based Europe One radio network and a Temoignage Chretien contributor, wrote the article mainly from his recollections of a breakfast meeting with Mitterrand on June 28, immediately after the two men had talked, somewhat less candidly, on the air. The ground rules for the post-interview session were never made clear, and Bauchard decided to publish Mitterrand's remarks because of their importance.

In the article, Mitterrand admits: "I committed the error of not devaluing from the first," a move advocated by Michel Jobert, then Foreign Trade Minister. Said Mitterrand: "I felt that he was right. But [Prime Minister Pierre] Mauroy and [Finance Minister Jacques] Delors persuaded me to the contrary." Mitterrand indicated that he wanted to impose a policy of economic "rigor" as early as the spring of 1982. He felt that the "Germans were not ready," an apparent reference to Chancellor Helmut Schmidt's reluctance at the time to undertake a simultaneous revaluation of the mark.

According to Bauchard's account, Mitterrand explained his misjudgments by saying, "I was carried by victory, we were intoxicated." He went on, "Everybody--O.E.C.D. experts, my own advisers, the economic experts, the journalists--was predicting a return to growth in 1983. Honestly, I was lacking in the necessary elements to determine that we were wrong." Added the President: "I underestimated the role of the lobbies, France's attachment to acquired benefits, corporatism. French people like to hear talk about rigor from those on the right. But as soon as we propose it, we are no longer credible." Mitterrand had some unkind words for tight-money U.S. policies, which he blamed for prolonging the world recession: "It is true that we may have dreamed a little bit in 1981 and underestimated the length of the international crisis. I overestimated the good will of the Americans. I don't expect anything from Reagan any more."

Officially, the Elysee Palace would neither confirm nor deny the authenticity of the statements, declaring them "the sole responsibility of Mr. Bauchard." Insiders, however, confirmed the substance, if not the precise wording, of the remarks. The Mitterrand mea culpa drew little fire from Socialists or the opposition. Said Pierre Charpy, vice secretary of the Neo-Gaullist Party: "These confidentialities do not produce any real revelations, strictly speaking." Money markets may have reacted more strongly: the franc last week dropped to a record low of 7.76 to the dollar, and some financial analysts said the President's confessions were at least partly to blame. This file is automatically generated by a robot program, so viewer discretion is required.