Several years ago, Hollande tried – and failed – to make French socialism that much better by instituting a 75% tax on millionaires. It didn’t last long.
Now in the aftermath of Brexit, the French leader is pushing to make Paris into the capital that will benefit the most as companies may (or may not) seek to depart from London as part of the UK’s separation from the UK. To do this Les Echos is reporting that the French leader is proposing new tax cuts for the middle class worth up to €2 billion, as well as adapting rules “to make Paris a more attractive financial center.”
- FRANCE’S HOLLANDE SAYS WE MUST ADAPT OUR RULES, INCLUDING ON TAXES, TO MAKE PARIS A MORE ATTRACTIVE FINANCIAL CENTRE – LES ECHOS
- FRANCE’S HOLLANDE SAYS CONSIDERING NEW TAX CUTS FOR MIDDLE CLASSES WORTH A MAXIMUM OF 2 BLN EUROS
- FRANCE’S HOLLANDE WILL USE CONSTITUTIONAL AMENDMENT TO PUSH THROUGH CONTESTED LABOUR LAW IF NEEDED
It is unclear how the French proposal will pass EU regulations which have found the French fiscal situation to already be in dire straits.
Furthermore, as companies evaluate whether to depart the UK for France, they may want to consider scenes such as the following showing relentless local protests, now stretching for months, against the much maligned anti-labor reform.
Tear gas, multiple arrests at anti-labor reform rally in Paris https://t.co/vAtXuQj1EZ pic.twitter.com/ZBpPWLWvFT
— RT (@RT_com) June 29, 2016
Finally, the entire premise whther anyone will leave the UK may have to be reevaluated. Earlier, both Goldman Sachs and Morgan Stanley denied speculation they are poised to shift London-based staff and operations to Frankfurt as soon as Britain’s divorce proceedings from the European Union formally begin. “We have not made any changes to our real estate requirements in Frankfurt as a result of the referendum result,” Goldman said in a statement issued on Wednesday. Morgan Stanley also moved to quell chatter it was planning to relocate to the German financial hub when the UK government evokes Article 50 — the first official step in its disentanglement from the 28-nation bloc.
And then moments ago, General Motors chief economist Mustafa Mohataram said the automaker sees no significant impact to the U.S. auto market from UK voters’ recent decision to exit the European Union. In fact, he added, GM may increase UK auto production if the British pound remains devalued over the longer term.
Was all that fearmongering for nothing?
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