First Term As President (1995–2002)
During the 1995 presidential campaign, Chirac criticised the "sole thought" (pensée unique) of neoliberalism represented by his challenger on the right and promised to reduce the "social fracture", placing himself more to the center and thus forcing Balladur to radicalise himself. Ultimately, he obtained more votes than Balladur in the first round (20.8 percent), and then defeated the Socialist candidate Lionel Jospin in the second round (52.6 percent).
Chirac was elected on a platform of tax cuts and job programs, but his policies did little to ease the labor strikes during his first months in office. On the domestic front, neo-liberal economic austerity measures introduced by Chirac and his conservative prime minister Alain Juppé, including budgetary cutbacks, proved highly unpopular. At about the same time, it became apparent that Juppé and others had obtained preferential conditions for public housing, as well as other perks. At the year's end Chirac faced major workers' strikes which turned itself, in November–December 1995, into a general strike, one of the largest since May 1968. The demonstrations were largely pitted against Juppé's plan on the reform of pensions, and led to the dismissal of the latter.
Shortly after taking office, Chirac – undaunted by international protests by environmental groups – insisted upon the resumption of nuclear tests at Mururoa Atoll in French Polynesia in 1995, a few months before signing the Comprehensive Test Ban Treaty. Reacting to criticism, Chirac said, "You only have to look back at 1935...There were people then who were against France arming itself, and look what happened." On 1 February 1996, Chirac announced that France had ended "once and for all" its nuclear testing, intending to accede to the Comprehensive Test Ban Treaty.
Elected as President of the Republic, he refused to discuss the existence of French military bases in Africa, despite requests by the Ministry of Defence and the Quai d'Orsay (Ministry of Foreign Affairs). The French Army thus remained in Côte d'Ivoire as well as in Omar Bongo's Gabon.
In 1997, Chirac dissolved parliament for early legislative elections in a gamble designed to bolster support for his conservative economic program. But instead, it created an uproar, and his power was weakened by the subsequent backlash. The Socialist Party (PS), joined by other parties on the left, soundly defeated Chirac's conservative allies, forcing Chirac into a new period of cohabitation with Jospin as prime minister (1997–2002), which lasted five years.
Cohabitation significantly weakened the power of Chirac's presidency. The French president, by a constitutional convention, only controls foreign and military policy— and even then, allocation of funding is under the control of Parliament and under the significant influence of the prime minister. Short of dissolving parliament and calling for new elections, the president was left with little power to influence public policy regarding crime, the economy, and public services. Chirac seized the occasion to periodically criticise Jospin's government.
Nevertheless, his position was weakened by scandals about the financing of RPR by Paris municipality. In 2001, the left, represented by Bertrand Delanoë (PS), won over the majority in the town council of the capital. Jean Tiberi, Chirac's successor at the Paris townhall, was forced to resign after having been put under investigations in June 1999 on charges of trafic d'influences in the HLMs of Paris affairs (related to the illegal financing of the RPR). Tiberi was finally expelled from the RPR, Chirac's party, on 12 October 2000, declaring to the Figaro magazine on 18 November 2000: "Jacques Chirac is not my friend anymore". After the publication of the Méry video-tape by Le Monde on 22 September 2000, in which Jean-Claude Méry, in charge of the RPR's financing, directly accused Chirac of organizing the network, and of having been physically present on 5 October 1986, when Méry gave in cash 5 millions Francs, which came from companies who had benefited from state deals, to Michel Roussin, personal secretary (directeur de cabinet) of Chirac, Chirac refused to follow up his summons by judge Eric Halphen, and the highest echelons of the French justice declared that he could not been inculpated while in functions.
During his two terms, he increased the Elysee Palace's total budget by 105 percent (currently €90 million, whereas 20 years ago it was the equivalent of €43.7 million). He doubled the number of presidential cars – nowadays there are 61 cars and seven scooters in the Palace's garage. He has hired 145 extra employees – the total number of the people he employed simultaneously was 963.
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