The domestic policy of the Nicolas Sarkozy administration was led by François Fillon's government as soon as Nicolas Sarkozy won the 2007 French presidential election and the government appointed by the president. According to the French constitution, the government and the Prime Minister "determine and conduct the policy of the nation", that is to say, deal with the domestic policy, while the President of the Republic focuses on foreign relations; however, a modification of the constitution in 2001 shortened the presidential mandate from seven to five years, so that the presidency lasts the same time as the government's mandate. Therefore, the president can be more implicated in the governmental policy. It was the case with Sarkozy, who has been accused of being a "hyper-president" by his opponents. François Fillon appeared as too much submitted to the president.
Sarkozy had promised during the presidential campaign many reforms. He announced the government would be very dynamic. He pledged to completely revamp the higher education system, to overhaul the judiciary system, judged as too ancient, to lead profound fiscal and economic reforms, and to revise the integration and social benefits system. He pledged to create ministries dedicated to the environment and to immigration and national identity. He also announced a complete reform of the health system, and various measures concerning culture.
Timeline of events
First reforms On 6 May 2007, Nicolas Sarkozy was elected President of the Republic of France at the second round of the presidential elections, with 53,06% of the votes. Few days later, on 18 May, he appointed François Fillon as Prime Minister. The first government comprised 15 ministers, 4 secretaries and one high commissary, but this government was to be transitional, because legislative elections were to be led. On 17 June, the UMP obtained the majority in the second round of the legislative elections, but less large than expected. The day after, a new government was therefore formed, with 15 ministers, 14 secretaries and 1 high commissary. Six members of the government come from the Socialist Party.
One week later, in the first Council of Ministers, the first bills were prepared. On 20 and 27 June, the Council of ministers began to prepare and examine the TEPA law, the General Review of Public Policies, and the reform of the judiciary map. Meanwhile, the government presented to "social representatives" a first draft on social negotiations and minimum service in transports. On 3 July, Prime Minister François Fillon presented to deputies of the National Assembly the broad lines of his domestic policy: modernization of institutions, social negotiations, reform of high school system, reform of the judiciary map, reform of the labour market, reform of the illness assurance, creation of a social TVA, policy on public debt. The Council of Ministers continued to examine bills pledged by Nicolas Sarkozy during the presidential campaign: bill on immigration and integration, LRU bill, draft on social negotiations.Communiqué by the Council of Ministers, 04.07.2007 On 7 July, they plan the organization of the Grenelle Environment. In August, an extraordinary session of the Parliament allowed various laws to be enacted in a hurry: LRU law, law on recidivists, TEPA law (enacted after the Constitutional council modified it), law on social dialogue and minimum service in transport, adoption of the RSA (implemented for experimentation in November).
Preparation of major laws Reforms continued to be prepared and examined after the summer holidays, with the creation of commissions, releasing of reports and discussions. Nicolas Sarkozy also prepared the pledged reform of secondary education and high school by writing to every teacher a « Letter to teachers » in which he recalled the missions and the values conveyed by school and teachers. He also created, soon after, a Commission for the evolution of the teacher job. On 7 September, a first round of negotiations between social representatives on the modernization of the labour market was launched. The Grenelle Environment lasted from September to October, and led to a plan designed by the Minister of the Environment Jean-Louis Borloo. The negotiations led to a first law, on GMOs. The reform of the judiciary system also began, but was subject to many debates. In November, the minister of Justice Rachida Dati unveil the reform of the judiciary map for the next three years, causing the discontentment of magistrates and judges. The reform began with a law on dangerous criminals (enacted in February 2008, after validation by the Constitutional Council). On 20 November, the law on immigration and integration was enacted after the constitutional council approved the possibility to resort to DNA tests, controversial point of the bill.
Major economical reforms were also underway, with the release of other major discussions were led to prepare two contradictory reports on social TVA, ordered by the President, the preparation on a law on competition on the sector of distribution, and a first budget bill for 2008 with a prevision growth between 2 and 2,5% and a 41,7 bn euros deficit, reduction of public debt to 64% of GDP, and suppression of 22 921 civil servants jobs. The budget bill for Social Security was also ambitious, with a reduction of the deficit to à 9 billion euros. On 30 August, a "Commission for the liberation of the French growth", presided by Jacques Attali, had been created. The commission was asked to release a report, ordered by the President, to revive the French economy. The Conseil d’orientation des retraites (COR) released a report stating the pension reform of 2003 did not allow improve the situation. It said the measures to improve employment of seniors failed. The preparation of the Grenelle Insertion, that would take place in May 2008, was also announced, in November. Finally, on 19 December, the government unveiled its plan for social reforms in 2008, including the reform of the labour market, of social negotiations, further training, and status of civil servants.
Reform of the central government and the institutions was also underway at the end of 2007, as part of the RGPP In September, the Home Minister announced the creation of a direction of domestic information, resulting from the merge between the direction of supervisory of the territory (DST) and the branch of the French police force dealing with political security (RG). In October, the minister du Budget officially announced the merger between the general direction of taxation (DGI) and the general direction of public accounts (DGCP). On 29 October, the "Comité on the modernization and rebalance of the institutions of the Fifth Republic", presided by Édouard Balladur, released a report, ordered by the President; it was to prepare a major reform of the constitution and of the parliamentarian system. Finally, the bill merging the ANPE and the UNEDIC/ASSEDIC was presented (enacted in February 2008).
However, at the end of the year 2007, political life was troubled by a growing contestation of certain groups strongly affected by some reforms. Between October and December, university students at the beginning of November, a growing discontentment of university students, protesting against the LRU law, led to two months of strikes and blockades. The movement also extended to high school students. On 28 November, the Prime Minister and the Minister of Higher Education Valérie Pécresse signed an agreement guaranteeing a 50% increase in the universities budget within five years. The agreement aimed at satisfying the students and putting an end to the movement. The reform of the judiciary map also caused a month of protestations of magistrates and judges, but the law was finally enacted on 27 December, despite the opposition of trade-unions. Economic reforms were also highly controversial. The Minister of Labour unveiled a controversial plan for the special retirement plan. The Minister proposed a deadline to trade unions to engage negotiations. Discussions open with RATP and SNCF, but national strikes are organized to oppose the law. In November, national negotiations between patronal organizations and trade unions on the modernization of the labour market. They fail to reach an agreement. In December negotiations on the special retirement plan continue, but failed.
2008 reforms At the beginning of 2008, various laws previously announced were voted by the Parliament and enacted: merger ANPE-Unedic, law on dangerous criminals, fusion DST-RG, implementation of the RGPP.
Preparations of other laws continued. On 11 January a third round of negotiations on the modernization of the labour market was led, with at last an agreement achieved and signed by the participants. A week after, discussions on social dialogue and representation of workers in companies were launched. Preparation of education reforms continued, with the "green book on the evolution of the teacher job" published. In February, the minister of Education presented the reform of education programs. Meanwhile, debates on the reform of the judiciary map engaged in February. The highly expected report by the Commission for the liberation of the French growth was published on 30 January. The expected plan "Espoir banlieues" was unveiled by the president.
The month February was marked by a strike of public television channels, protesting against the suppression of advertising on France Télévisions. A commission for the new public television was created to design the law. In March, negotiations on pensions between trade unions and patronal organizations, also with various strikes and demonstrations.
Following the regional and local elections in France, the government was modified on 18 March; however, the first cabinet underwent few changes, and that did not modify the reforms to be led. Soon after the cabinet change, the law on the modification of institutions was presented by the Prime Minister himself, and the law on the modernization of the labour market was at last voted and enacted, after several months of negotiations.
Meanwhile, various reforms were launched with publications of reports and creation of special commissions. In April, a report was released by the Commission Larcher, allowing debates on the reform of hospitals to be engaged. A commission to examine the reform of laws on minors delinquency was created by the Minister of Justice. A report to plan the modification of civil servants' statute was released.
May was dominated by debates on social reforms, amid various national demonstrations and strikes.
Fight against the crisis The last months of 2008 were dominated by the fight against the financial and economic crisis. In October, the President unveiled plans to support the real-estate sector (purchase of 30.000 buildings by the government), the PME (French small-and-middle-sized companies), with 20 billion euros, and the written press, very affected by the crisis. The President himself launched on 2 October the General States of the Press to provide financial aids to newspapers. Financial help was also provided by the State to the banking sector. The government had to intervene jointly with Luxembourg and Belgium to save the ailing bank Fortis. The French government was committed with other European countries to recapitalize banks, and participated to the Eurogroup plan signed in October.