Fun in France
From the
UK Telegraph:
French business erupts in fury against "disastrous" Fran�ois Hollande
�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. It�s becoming really dramatic.�
A bit more:
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.
62.2 percent is a business and jobs killer. Not sustainable. More:
Mr Hollande is tightening fiscal policy by 2pc of GDP next year to meet EU deficit targets, with two-thirds coming from higher taxes. The budget does little to shrink the French state. Spending has risen to 55pc of GDP, similar to Sweden but without Nordic labour flexibility.
French economic growth has been near zero for the past five quarters. It may have tipped into recession over the summer as the malaise spread from Italy and Spain, according to Banque de France.
New car registrations were down 7.7pc in the third quarter from a year earlier. Unemployment has been creeping up, reaching a post-euro high of 10.6pc.
When will these people ever learn -- big government is not the solution, it is the problem.
Posted by DaveH at October 16, 2012 10:41 PM