Français : Francois Hollande - Mardis de l’ESSEC (Photo credit: Wikipedia)
This is an important story reported in the Telegraph. Check it out!
Francois Hollande announces French tax grab on holiday homes – Telegraph.
The story can be read at two levels. Firstly, it will bring misery to the UK nationals who have holiday homes in France. Secondly, it raises alarming questions about targeting foreigners more than French nationals. Given the relatively small amount of increased tax revenue to be generated, this action looks politically inspired.
Personally, I think that Francois Hollande’s policies of higher taxes on the rich and foreigners will drive investment away from France, reduce France’s growth and put France in an increasingly awkward economic squeeze. It is clear to me, and presumably financial markets, that France is neglecting two critical priorities:
- Cutting the size of France’s bloated and inefficient Public Sector, and
- Cutting the pay and pensions of French Public Sector workers – this is effectively an internal devaluation of the Euro to raise competitively to German levels