French business expresses anger and frustration with. François Hollande
France is sliding into a grave economic crisis and risks a full-blown “hurricane” as investors flee rocketing tax rates, the country’s business federation Medef has warned.
Source : https://www.marocafrik.com/english/French-business...
“The situation is very serious. Some business leaders are in a state of quasi-panic,” said Laurence Parisot, head of employers’ group MEDEF in an interview with Le Figaro.
“The pace of bankruptcies has accelerated over the summer. We are seeing a general loss of confidence by investors. Large foreign investors are shunning France altogether. It’s becoming really dramatic.” Medef , said the threat has risen from “a storm warning to a hurricane warning”, adding that the Socialist government of François Hollande has yet to understand the “extreme gravity” of the crisis.The main concern centres round Article 6 of the new tax law which raises the top rate of capital gains tax from 34.5pc to 62.2pc. This compares with 21pc in Spain, 26.4pc in Germany and 28pc in Britain.
“Let’s be clear, Article 6 is not acceptable, even if modified. We will not be complicit in a disastrous economic mistake,” Mrs Parisot told Le Figaro.She said the policies border on economic illiteracy: “The idea of aligning taxes on capital with those on wages is a profound economic error. It is scandalous that the French have been left in such economic ignorance for years.”
France has always had a large public sector and the budget maintains it. Spending has risen to 55pc of GDP. Growth in France has been practically zero for the last five quarters. Unemployment is now 10.6pc and the fear is that increased fiscal austerity will adversely affect the economy and growth rates.
“The pace of bankruptcies has accelerated over the summer. We are seeing a general loss of confidence by investors. Large foreign investors are shunning France altogether. It’s becoming really dramatic.” Medef , said the threat has risen from “a storm warning to a hurricane warning”, adding that the Socialist government of François Hollande has yet to understand the “extreme gravity” of the crisis.The main concern centres round Article 6 of the new tax law which raises the top rate of capital gains tax from 34.5pc to 62.2pc. This compares with 21pc in Spain, 26.4pc in Germany and 28pc in Britain.
“Let’s be clear, Article 6 is not acceptable, even if modified. We will not be complicit in a disastrous economic mistake,” Mrs Parisot told Le Figaro.She said the policies border on economic illiteracy: “The idea of aligning taxes on capital with those on wages is a profound economic error. It is scandalous that the French have been left in such economic ignorance for years.”
France has always had a large public sector and the budget maintains it. Spending has risen to 55pc of GDP. Growth in France has been practically zero for the last five quarters. Unemployment is now 10.6pc and the fear is that increased fiscal austerity will adversely affect the economy and growth rates.
Source : https://www.marocafrik.com/english/French-business...