Franc slumps at prospect of Giscard loss

Press, 2 May 1981, Page 9

Franc slumps at prospect of Giscard loss

NZPA-Reuter Paris i Share prices fell and the 1 franc came under pressure I yesterday in response to i business concern at the pros- i pect of a Socialist victory in the French presidential election. Just 10 days before the run-off between the Socialist Francois Mitterrand and President Valery Giscard d'Estaing. the challenger has succeeded in winning widespread Left-wing support, including unconditional Communist backing. The apparent unity of the Left, after years of squabbling between Socialists and Communists, contrasted with the refusal of the President's neo-Gaullist allies to throw their full weight behind Mr Giscard. The franc hit its lowest level against the dollar since March, 1974, and the stockmarket index slumped by 2.2 per cent by the end of an active day's trading. The Bank of France bought francs to support the French currency inside the European Monetary System, which maintains exchangerate limits for member currencies. Financial analysts said businessmen were convinced that Mr Mitterrand stood a serious chance of winning the election. In the first round he polled 25.31 per cent of the vote to Mr Giscard’s 28,84 per cent The Communist candidate, Georges Marchais, who was eliminated from the contest with 15.34 per cent, pledged

full support for Mr Mitterrand without pressing conditions such as the appointment of Communists to key ministerial posts. With the Communist Party traditionally highly disciplined, most of Mr Marchais' followers can be expected to follow his clear lead. Yesterdav the neo-Gaullist Rallv for" the Republic (R.P.R.), whose candidate, Jacques Chirac, took almost 18 per cent of the vote, decided to adopt a neutral stand and not endorse Mr Giscard. Mr Chirac himself has. however, said that he will vote for the President. The R.P.R. votes are considered vital to the 'President's re-election bid and the decision to withhold backing was seen by most political analysts as a serious blow. Mr Chirac, the President'S Prime Minister from 1974 to 1976, told supporters the day after the first round he personally would vote for the President but they should feel free to vote according to their conscience. French television said the neo-Gaullist stand could well assure victory for Mr Mitterrand., who is making his third attempt at the presidency. The latest poll also supports this view. Published by the weekly magazine, “Le Point,” the survey showed that 84 per cent of the Communist, electorate?. had turned to Mr Mitterrand who now has 51.5 per cent of the votes against 48.5 per cent for Mr Giscard.