Seven months later, while mostly unknown at that time, President Giscard d'Estaing appointed him Prime Minister and Minister of Economy and Finance. He presented him to the French people as "the best economist in France" (French: meilleur économiste de France). Under the Fifth Republic, he was the only person to hold these two offices at the same time. He left the ministry of Economy and Finance in 1978 but stayed as Prime minister until the defeat of Giscard d'Estaing at the 1981 presidential election.
At the head of the cabinet, he was faced with the conflict which divided the parliamentary majority between the "Giscardians" and the neo-Gaullist Rally for the Republic (RPR) led by his predecessor Jacques Chirac. The right majority unexpectedly won the 1978 legislative election.
Barre was primarily confronted with an economic crisis. He advocated numerous complex, strict policies ("Barre Plans"). The first Barre plan emerged on 22 September 1976, with a priority to stop inflation. It included a 3-month price freeze; a reduction in the value-added tax; wage controls; salary controls; a reduction of the growth in the money supply; and increases in the income tax, automobile taxes, luxury taxes and bank rates. There were measures to restore the trade balance and support the growth of the economy and employment. Oil imports, whose price had shot up, were limited. There was special aid to exports, and an action fund was set up to aid industries. There was increased financial aid to farmers, who were suffering from a drought, and for social security. The package was not very popular but was pursued with vigor.[1]
He did not use diplomatic language in the face of trade union opposition, . Instead, he mocked "the bearers of banners" (French: les porteurs de pancartes) and he exhorted "instead of grousing, you should work hard".
Post-premiership
After he departed from the head of the cabinet, he was elected deputy of Rhônedépartement under the label of the Union for French Democracy (UDF). However, he never formally joined the party. He held his parliamentary seat until 2002.
In the 1980s, he competed for the leadership of the right against Chirac. Believing that the "cohabitation" was incompatible with the "Fifth Republic", he let Chirac take the lead of the cabinet after the 1986 legislative election. He ran as UDF candidate for president in the 1988 election, but some components of his party covertly supported the other right-wing candidate, the Neo-Gaullist Prime Minister Jacques Chirac. In this, in spite of positive polls at the beginning of the campaign, he came third behind the two protagonists of the "cohabitation": the Socialist President François Mitterrand and Jacques Chirac. For the second round, he called his voters to transfer to the RPR candidate, who was finally defeated.
After the failure of his presidential candidacy, he focused on his local tenures, in Lyon. In 1995, the RPR Mayor of Lyon Michel Noir could not compete for another term due to a judicial indictment, and consequently, Barre was the conservative candidate for the mayoralty. He was elected but he did not run for a second term in 2001. One year later, he finished his last parliamentary term in the French National Assembly and retired from politics.
Raymond Barre was probably the only French politician to have reached such high levels of responsibilities without having ever been an official member or leader of any political party. He always kept some distance with what he considered to be the political "microcosm".
Raymond Barre died on 25 August 2007 at age 83 at the Val-de-Grâce military hospital in Paris,[2] where he was being treated for heart problems since his transfer from a hospital in Monaco on 11 April 2007.[3]
On several occasions, Raymond Barre made remarks that were interpreted as antisemitic, or at least supportive of antisemitism. In 1980, when he was prime minister, a bombing was attempted against the Union Libérale Israélite de France, a synagogue in the rue Copernic, Paris; however the bomb detonated in the street when the Jews attending shabbat were inside the synagogue, and not when they were out; but as a result some non-Jewish bystanders were killed. Raymond Barre then famously denounced:
"A hateful attack which wanted to strike at the Jews who were in that synagogue, and which struck innocent French people who were crossing the street."[4][5]
In 2007, Barre argued on a radio show that "the Jewish lobby" had orchestrated criticism regarding his 1980 remarks. On this same show, Barre defended the collaborationistMaurice Papon at his trial, describing him as "a scapegoat." Barre was criticized for these remarks.[5]
Governments
Barre's First Government, 25 August 1976 – 30 March 1977
29 November 1978 – Jean François-Poncet succeeds Guiringaud as Minister of Foreign Affairs.
4 July 1979 – Jacques Barrot succeeds Veil as Minister of Health and Social Security. Maurice Charretier succeeds Barrot as Minister of Commerce and Craft Industry.
29 October 1979 – Jean Mattéoli succeeds Boulin as Minister of Labour and Participation.
2 October 1980 – Joël Le Theule succeeds Bourges as Minister of Defense. Daniel Hoeffel succeeds Le Theule as Minister of Transport. Michel Cointat succeeds Deniau as Minister of External Commerce.
22 December 1980 – Robert Galley succeeds Le Theule (d.14 December) as Minister of Defense.
4 March 1981 – Michel d'Ornano succeeds Lecat as Minister of Culture. No one succeeds Lecat as Minister of Communication.
Retirement
Barre retired from active politics in June 2002. He was being treated at a hospital for a heart condition since April 2007 when he died on 25 August 2007. He was survived by his wife and two sons.[6]
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