The French franc gained strongly on foreign exchange markets on Friday (27 August) following the appointment of the new French Prime Minister, Monsieur Raymond Barre.
GV: new Prime Minister Barre arrives at official residence Hotel Matignon, Paris. Out of car, surrounded by newsmen and enters hotel.
GV: Newsmen waiting outside hotel.
SV: Barre shakes hands with Monsieur chirac, former Prime Minister and Chirac walks to car.
GV: Paris Stock Exchange and sign. (2 shots)
TVS INTERIORS: Business conducted in stock exchange (4 shots)
Monsieur Barre has also taken charge of the Finance Ministry, indicting the priority given to the management of the economy. He's also announced that he will meet trade union and business leaders within the next two weeks to discuss ways of talking inflation. Aged 52, the new Prime Minister has been hailed a France's top economist by President Giscard.
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Background: The French franc gained strongly on foreign exchange markets on Friday (27 August) following the appointment of the new French Prime Minister, Monsieur Raymond Barre.
SYNOPSIS: The new Prime Minister arrived this official residence -- the Hotel Matignon -- son after the new government was announced by the French President, Monsieur Valery Giscard d'Estaig. Monsieur Barre was promoted form Foreign Trade Minister after the Gaullist, Monsieur Jacques Chirac quit the premiership in a bitter dispute with the President. The new cabinet is likely to stay in power until general elections in 1978 -- a crucial test between pro-Giscard forces and the opposition left.
For Monsieur Chirac -- shaking hands with Monsieur Barre -- the economy was a key factor in his decision to resign. It's also expected it will be the deciding issue in the 1978 elections. Politically, although the new government has fewer Guallists, some strong appointments have been made to ensure their continued alliance with the President's Independent Republicans.
While Monsieur Chirac headed for the country and what he called a long vacation, the franc forged ahead on the foreign currency market. Before Monsieur Chirac quit on Wednesday (25 August) the franc had sunk to its lowest level against the U.S. dollar in three years. Currency dealers blamed the fall on inflation and mounting trade deficits. However, increasing uncertainty over the future of the Chirac administration had also been held responsible.