9:52PM BST 15 Oct 2012
The situation is very serious. Some business leaders are in a state of quasi-panic,â said Laurence Parisot, head of employersâ group MEDEF.
âThe 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. Itâs becoming really dramatic.â
MEDEF, Franceâs equivalent of the CBI, said the threat has risen from âa storm warning to a hurricane warningâ, adding that the Socialist government of François Hollande has yet to understand the âextreme gravityâ 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.
An alliance of private organisations in France has issued a protest entitled âState of Emergency for Businessâ, warning that confiscatory tax rates threaten lasting damage to the French economy.
Mrs Parisot said the policies border on economic illiteracy: âThe 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.â
French business has called for âcompetiveness shockâ of business tax cuts to claw back lost ground against Germany. Instead, it faces an extra â¬10bn (£8.1bn) of business costs from the budget unveiled in September.
http://www.leparisien.fr/economie/l...e-tempete-a-un-ouragan-15-10-2012-2234735.php
capital gains 62%?:eek:
The situation is very serious. Some business leaders are in a state of quasi-panic,â said Laurence Parisot, head of employersâ group MEDEF.
âThe 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. Itâs becoming really dramatic.â
MEDEF, Franceâs equivalent of the CBI, said the threat has risen from âa storm warning to a hurricane warningâ, adding that the Socialist government of François Hollande has yet to understand the âextreme gravityâ 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.
An alliance of private organisations in France has issued a protest entitled âState of Emergency for Businessâ, warning that confiscatory tax rates threaten lasting damage to the French economy.
Mrs Parisot said the policies border on economic illiteracy: âThe 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.â
French business has called for âcompetiveness shockâ of business tax cuts to claw back lost ground against Germany. Instead, it faces an extra â¬10bn (£8.1bn) of business costs from the budget unveiled in September.
http://www.leparisien.fr/economie/l...e-tempete-a-un-ouragan-15-10-2012-2234735.php
capital gains 62%?:eek:
