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EU: French business erupts in fury against "disastrous" Hollande
The Telegraph ^ | 10/15/2012 | Ambrose Evans-Pritchard
French business erupts in fury against "disastrous" Hollande - Telegraph
This is what Obamas policies would do if the republicans weren't there.
The Telegraph ^ | 10/15/2012 | Ambrose Evans-Pritchard
French business erupts in fury against "disastrous" Hollande - Telegraph
France is sliding into a grave economic crisis and risks a full-blown hurricane as investors flee rocketing tax rates, the countrys business federation has warned.
Francois Hollande is tightening fiscal policy by 2pc of GDP next year to meet EU deficit targets
The situation is very serious. Some business leaders are in a state of quasi-panic, said Laurence Parisot, head of employers group MEDEF.
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. Its becoming really dramatic.
MEDEF, Frances equivalent of the CBI, 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 immediate bone of contention is 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.
Lets 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.
An alliance of private organisations in France has issued a protest entitled State of Emergency for Business, warning that confiscatory tax rates threaten lasting damage to French economy.
Mrs Parisot 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.
French business has called for competiveness shock of business tax cuts to claw back lost ground against Germany. Instead, it faces an extra 10bn (£8.1bn) of business costs from the budget
This is what Obamas policies would do if the republicans weren't there.