ABSTRACT

This chapter explores the reasons why, despite considerable convergence in the economic policy preferences and policies of the mainstream left and right, and economic policy remained a major subject of debate during the 2002 election campaigns. Few new economic policy ideas were presented by the parties in the campaign for the legislative elections following the second ballot of the presidential elections. The chapter provides an overview of the economic policy of the Lionel Jospin-led government and explores the leading candidates' policy positions on the five major economic issues of the election campaign. These include: tax; government spending and respecting the Stability Pact deficit rules; the 35-hour week and employment policy more generally; pensions reform; and the privatisation of the remaining state owned utilities. Employment creation is a particularly sensitive political matter for French governments given the high rate of unemployment, which reached 12.4 per cent in 1997.