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These measures would please the world's central bankers, but they would be taken as a direct affront by the millions of French workers who only a few months ago were striking for higher wages, better living conditions, more medical aid. Union officials warned De Gaulle not to put the burden of the franc's rescue on the workers. "If the government decides that the workers are going to pick up the tab, it will provoke a movement of great depth that risks being extremely serious and extremely violent," said Eugene Descamps, the secretary-general of France's largest non-Communist union. Similarly, if education reforms are curtailed, new student disorders might erupt. There is the distinct danger that De Gaulle, in his efforts to save the franc, might lose the support of the French.
Troubled Springtime De Gaulle could hardly blame other countries for dealing somewhat severely with him. He had always been notably reluctant to support his allies when they got into trouble. Just a year ago last week, he viewed devaluation of the British pound with haughty detachment—even with a certain amount of enjoyment. As he saw matters, it was high time that those lazy Londoners started straightening out their economic problems. A few months later, when the dollar also suffered a crisis of confidence, he recalled that he had said all along that the U.S. ought to stop its deficit spending, correct its imbalance of payments and, in order to ease the impact of inflation, raise its taxes.
Suddenly, however, De Gaulle found himself in trouble at home. Last May, France was thrown into chaos for weeks when students and workers declared a general strike. It was terrifyingly effective—and De Gaulle finally agreed to a settlement for the workers that set off an awesome wage-price spiral. Ever since, the French economy has been sagging under the increased burden. At the same time, West Germany, France's erstwhile foe and long-time competitor, has enjoyed a new burst of prosperity. Viewing this situation, De Gaulle and his new Premier, Maurice Couve de Murville, obstinately repulsed all suggestions that they might alleviate France's economic plight by devaluing the franc. Instead, they demanded that the Germans revalue the mark upward, and thus slow the flight of francs to West Germany.
Curiously, for all its troubles, France's economy was in basically good shape. French industry was producing at record levels and unemployment stood at a bearable 470,000. Despite a major outflow of monetary reserves brought on by the social upheavals that rocked the country last spring, the government still held more than $4 billion in gold and dollar reserves. About the only tangible signs of economic trouble were a 7% inflation rate, caused largely by the huge wage settlement that followed the general strike, and the bare beginnings of a trade deficit.