Drift to the Left

• Mitterand included Communists with his Socialists in his first government

• They instituted some left wing policies
• Reducing pension age
• Allowances increased
• Increasing workers rights
• Subsidies for firms who hired new workers
• Further nationalisations
• Taxes increased on wealthy

• However, inflation remained and the markets began to turn on France’s left wing ideas

• Era of Thatcherism and Reaganism