In 1988 , when France refused to meet the budgetary shortfall , the three main banks , all state - owned , collapsed .
The government was unable to pay teachers , civil servants and soldiers their salaries , nor students their grants .
In 1988 , when France refused to meet the budgetary shortfall , the three main banks , all state - owned , collapsed and the government was unable to pay teachers , civil servants and soldiers their salaries , nor students their grants .