Back To the Stone Age

I never believed Francois Hollande, Mister Nobody, had a shot at becoming president of France. Two days before the first round of the elections, however, I have to admit I was wrong. Sarkozy’s momentum in the polls has stalled. At this point, only a miracle can get him reelected.
The potential consequences of a Hollande victory are far reaching. The most damaging of these would be the end of a European union based on a French/German alliance. Angela snubbed Francois before the elections and this will not be forgotten. It is not that Ms. Merkel is mean or particularly fond of the outgoing president. She just does not want to have to deal with a new partner who rejects strict fiscal discipline.
From the foundation of the European community built by De Gaulle and Adenauer, progress in unification has always been dependent on its two core members. Giscard and Helmut Schmidt laid the groundwork of a European currency. Mitterand and Kohl let Jacques Delors build the common market with the free flow of goods, service, capital and people. Then Mitterand convinced Kohl to replace the Deutsche mark with the euro. Eventually Gerhard Schroder and Jacques Chirac managed to get along and not destroy what had been built by their predecessors. Angela Merkel then firmly took control of European events and got Sarkozy to admit German fiscal orthodoxy.
Monsieur Hollande is going to change that. He wants to bring France back to Francois Mitterand’s early policies of profligacy. It will not go over well in Berlin.
Here are some of the changes that are coming to France.
The marginal income tax rate will reach 75% above 1 million euros of revenues. A new bracket at 45% will also be added to people making between 150,000 and 1 million euros. On top of that, Mr Hollande plans to add a tax on “financial income”, by which he means investment income. Like Sarkozy, he wants to levy a minimum tax on revenues people living abroad. They have both noticed that overtaxed French people tend to move to Brussels, which is conveniently close to their beloved Paris.
Corporate profits are also to be milked, but the socialist candidate makes a distinction between good and bad companies. Small companies are good. But once they become too large (a threshold yet to be defined), he wants to tax them more. Entrepreneurs now know that a little bit of ambition is OK. Too much ambition is going to be punished. Expect the CAC 40 companies’ profits to be taxed at more than 33% in the near future. It suits the French to take back the number one global position from the Americans in corporate tax rate.
The French government’s expenditures already account for 56% of GDP. But that does not seem enough to Hollande. He wants to hire 60,000 new teachers and he wants to subsidize companies to hire 150,000 young workers. Other measures include raising the minimum wage, loading more price regulation onto the housing market, and increasing the mandatory share of social housing in any new development to 25%. He also wants to prohibit LBOs on the grounds that they harm workers. He has not yet openly agreed with his friend Melanchon to go back to strict enforcement of the 35 hour work week. That is to be announced after the elections.
Election promises being what they are, Monsieur Hollande is a bit vague on how he will do all this while balancing the budget by 2017. One thing is for sure: he does not want foreigners’ money. He will tap French savings instead. He will issue bonds available to French citizens only, which is not a new idea (none of Hollande’s are new). Nicolas Sarkozy abandoned this nonsense when he realized that he would have to pay much higher interest rates.
We are heading for rocky markets in France and Europe.

Post a comment or leave a trackback: Trackback URL.

Comments

  • URL  On April 22, 2012 at 11:56 pm

    Normally I do not learn post on blogs, nevertheless I would like to say that this write-up extremely pressured me to take a look at and do so! Your writing style has been surprised me. Thank you, quite fantastic post. 514707

  • SEO  On April 24, 2012 at 3:02 am

    Wow! Thank you! I constantly wanted to write in my web-site a thing like that. Can I get component of the post to my blog?

  • seo las vegas  On May 4, 2012 at 3:18 pm

    I used to be a lot more than pleased to seek out this internet-site.. I dont even know how I ended up here, but I thought this post was excellent. A whole lot a lot more A rise in Agreeable. 641105

  • les debrideurs  On May 4, 2012 at 3:53 pm

    Hello to all I cannot comprehend the method to add your web site in my rss reader. Assist me, please 784757

  • blog pelouse  On May 4, 2012 at 4:40 pm

    You produced some decent points there. I looked on the internet for that problem and located most individuals goes along with along together with your internet web site. 119677

  • http://www.autoapproveclub.com  On May 4, 2012 at 6:21 pm

    I love what you guys are up too. Such clever work and exposure! Keep up the very good works guys Ive incorporated you guys to my own blogroll. 474324

  • bottines homme  On May 4, 2012 at 11:41 pm

    Aw, this was a really nice post. In thought I would like to place in writing in this way moreover – taking time and actual effort to create a very good article but what / things I say I procrastinate alot and also no indicates apparently get something done. 357195

  • online real estate valuation  On May 6, 2012 at 9:31 am

    Oh my goodness! an remarkable post dude. Thank you Even so My business is experiencing dilemma with ur rss . Dont know why Unable to subscribe to it. Can there be anyone obtaining identical rss dilemma? Anybody who knows kindly respond. Thnkx 610982

  • nursing jobs  On May 7, 2012 at 5:05 am

    Perfect just what I was looking for! . 99044

  • mma baltimore  On May 7, 2012 at 7:46 am

    Great information, better still to find out your blog that has a great layout. Nicely done 889151

  • black magic spells  On May 7, 2012 at 8:50 am

    What a lovely weblog page. I will surely be back once again. Please maintain writing! 384777

  • vrtno pohištvo  On May 7, 2012 at 12:19 pm

    Hi! Someone in my Facebook group shared this site with us so I came to check it out. Im undoubtedly loving the details. Im book-marking and will likely be tweeting this to my followers! Outstanding weblog and great style and style. 486937

  • march madness top handicapper  On May 7, 2012 at 4:01 pm

    We dont trust this wonderful submit. Nevertheless, I saw it gazed for Digg along with Ive determined you can be appropriate so i ended up being imagining within the completely wrong way. Persist with writing top quality stuff along these lines. 506875

  • how to get skinny thighs  On May 7, 2012 at 4:19 pm

    Pretty part of content. I just stumbled upon your weblog and in accession capital to assert that I get really loved account your weblog posts. Any way Ill be subscribing on your feeds or even I success you access constantly quick. 55580

  • Rudolph Bollettino  On May 7, 2012 at 7:44 pm

    Finally! While we can agree that being a powerful speaker is all well and good, but eventually you have to “get something done”.

  • parfumerija  On May 8, 2012 at 6:32 am

    Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your site? My blog is in the exact same area of interest as yours and my visitors would truly benefit from some of the information you provide here. Please let me know if this ok with you. Thanks! 754641

  • spells for love  On May 8, 2012 at 3:24 pm

    I dont typically comment but I gotta state thanks for the post on this excellent 1 : D. 909884

  • There is noticeably a bundle to find out about this. I assume you made sure nice factors in options also. 558476

  • klick hier  On May 9, 2012 at 6:15 am

    very nice post, i certainly love this website, keep on it 595464

  • hier gehts weiter  On May 9, 2012 at 6:29 am

    Id constantly want to be update on new content on this website, bookmarked! 596320

  • Lainavertailu  On May 9, 2012 at 12:47 pm

    Could it be okay to write several of this on my small internet web site only incorporate a 1 way link towards the web site? 752047

  • Click here  On May 9, 2012 at 1:03 pm

    I gotta bookmark this web site it seems extremely beneficial . 104629

  • hae lainaa  On May 9, 2012 at 7:59 pm

    Gnarly article mate, keep the good work, just shared this with ma friendz 20720

  • blackhead removal  On May 10, 2012 at 5:03 am

    Hi! I discovered your site accidentally today, but am actually pleased that we did! Its not only entertaining, but in addition straightforward to make use of in contrast to lots that Ive viewed! 58354

  • best free ftp software  On May 10, 2012 at 10:18 am

    Good job on this article! I really like how you presented your facts and how you made it interesting and easy to understand. Thank you. 678395

  • scavenger hunt lists  On May 10, 2012 at 11:22 am

    Awesome article , Im going to spend more time researching this subject 580726

  • custom bingo cards  On May 10, 2012 at 12:24 pm

    Delighted for you to discovered this site write-up, My group is shopping a lot more often than not regarding this. This can be at this moment undoubtedly what I are already seeking and I own book-marked this specific site online far too, Ill often be maintain returning soon enough to appear at on your special weblog post. 585139

  • Bingo Cards  On May 10, 2012 at 12:44 pm

    Hey there! Nice stuff, please keep me posted when you post something like this! 268109

  • bingo cards  On May 10, 2012 at 1:04 pm

    How much of an exciting piece of writing, continue creating companion 407230

  • Sanjuanita Deleonardo  On May 10, 2012 at 1:23 pm

    I am usually to blogging and i actually respect your content. The article has actually peaks my interest. I am going to bookmark your site and keep checking for brand spanking new information.

  • emarket school  On May 10, 2012 at 1:32 pm

    I just could not go away your web site before suggesting that I very enjoyed the usual info a person supply to your guests? Is going to be back ceaselessly to be able to inspect new posts. 358925

  • learn internet marketing  On May 10, 2012 at 1:34 pm

    Wow, cool post. Id like to write like this too – taking time and real effort to make a great article but I procrastinate too a lot and never seem to get started. Thanks though. 441249

  • learn affiliate marketing  On May 10, 2012 at 2:04 pm

    Hello! Ive been reading your web website for a whilst now and finally got the courage to go ahead and give you a shout out from Kingwood Texas! Just wanted to say keep up the great work! 534487

  • social media training  On May 10, 2012 at 2:09 pm

    I visited a lot of website but I conceive this one contains something special in it in it 761667

  • Social Media Marketing  On May 10, 2012 at 2:32 pm

    An fascinating discussion is worth comment. I do believe which you need to write read a lot more about this subject, it will not be considered a taboo topic but typically everybody is too couple of to communicate in on such topics. To yet another. Cheers 390205

  • social media training  On May 10, 2012 at 2:41 pm

    Hi! Fantastic post! Please do tell us when I will see a follow up! 876838

    • Herve van Caloen  On May 10, 2012 at 3:28 pm

      I am working on the next one as of now. I think it will be called “The End of the Great Experiment”.

  • click here  On May 10, 2012 at 2:55 pm

    Ive been absent for some time, but now I remember why I used to really like this weblog. Thank you, I will try and check back far more often. How regularly you update your internet internet site? 767500

  • Backlink Checker  On May 10, 2012 at 3:17 pm

    It can be tough to write about this topic. I think you did an excellent job though! Thanks for this! 569777

  • treasurehuntclues.org  On May 10, 2012 at 3:36 pm

    hello I was quite impressed with the setup you used with this internet site. I use blogs my self so very good job. definatly adding to bookmarks. 927337

  • treasure hunt riddles  On May 10, 2012 at 3:44 pm

    As I web-site possessor I believe the content material matter here is rattling amazing , appreciate it for your efforts. You must maintain it up forever! Very best of luck. 250776

  • http://www.treasurehuntclues.org  On May 10, 2012 at 4:04 pm

    I love this info presented and possesses given me some type of resolve forpersistance to succeed i really enjoy seeing, so sustain the excellent work. 831595

  • raspberry ketone  On May 10, 2012 at 4:30 pm

    Youre so cool! I dont suppose Ive read anything like this before. So nice to search out any individual with some original thoughts on this subject. realy thank you for starting this up. this website is one thing thats wanted on the web, somebody with a bit of originality. useful job for bringing something new to the internet! 296937

  • cash loan  On May 10, 2012 at 7:09 pm

    Ill correct away grasp your rss feed as I cant in discovering your email subscription hyperlink or e-newsletter service. Do youve any? Please let me comprehend so that I might subscribe. Thanks. 520156

  • car service  On May 11, 2012 at 4:41 am

    I truly appreciate this post. I’ve been looking all over for this! Thank goodness I found it on Bing. You’ve made my day! Thanks again

  • Custom Doors Factory Direct  On May 11, 2012 at 11:53 am

    I gotta favorite this web site it seems handy really beneficial 749521

  • read more  On May 11, 2012 at 1:52 pm

    magnificent post, extremely informative. I wonder why the other specialists of this sector do not notice this. You need to continue your writing. Im certain, youve an excellent readers base already! 232996

  • hey, your internet website is outstanding. We do appreciate your work 637540

  • wood windows  On May 11, 2012 at 5:24 pm

    Hey! Nice stuff, do tell us when you post something like that! 618405

  • raspberry ketones  On May 11, 2012 at 7:14 pm

    Glad to be one of numerous visitors on this awing website : D. 362090

  • stream  On May 12, 2012 at 6:57 am

    Howdy just wanted to give you a brief heads up and let you know several with the pictures arent loading properly. Im not positive why but I feel its a linking concern. Ive tried it in two different internet browsers and both show exactly the same outcome. 593530

  • aaron wall  On May 12, 2012 at 8:58 am

    Oh my goodness! an exceptional post dude. A lot of thanks Even so We are experiencing dilemma with ur rss . Dont know why Not able to sign up to it. Could there be anybody finding identical rss dilemma? Anyone who knows kindly respond. Thnkx 643462

  • Get An Xbox 360 For Free  On May 13, 2012 at 10:28 am

    fantastic post. Neer knew this, regards for letting me know. 995321

  • Tory Ritzie  On May 13, 2012 at 11:55 am

    “Keep up the excellent piece of work, I read few content on this web site and I believe that your web blog is real interesting and holds bands of fantastic information.”

  • online cash advance  On May 13, 2012 at 12:36 pm

    I ran into this page accidentally, surprisingly, this really is a fantastic site. The web site owner has done a fantastic job writing/collecting articles to post, the information here is actually insightful. You just secured yourself a guarenteed reader. 771650

  • ebay  On May 13, 2012 at 11:20 pm

    A person essentially lend a hand to make significantly articles I may state. That will be the extremely initial time I frequented your web site page and up to now? I amazed with the research you created to create this specific publish incredible. Fantastic activity! 201988

  • Ted Mandelbaum  On May 14, 2012 at 5:15 am

    As I web website possessor I believe the content matter here is rattling great , appreciate it for your efforts. You need to keep it up forever! Great Luck. 542950

  • Allison Choi  On May 14, 2012 at 7:24 am

    Hey, you used to write superb, but the last couple of posts have been kinda boringK I miss your super writings. Past couple of posts are just a bit out of track! come on! 859692

    • Herve van Caloen  On May 14, 2012 at 7:32 am

      I’ll try harder! The last two posts were indeed reactions to the rapidly evolving political situation in Europe instead of more long term considerations.

  • raspberry ketone  On May 15, 2012 at 1:24 pm

    I admire your work , regards for all the helpful blog posts. 316000

  • Rupert Chalcraft  On May 15, 2012 at 3:41 pm

    I simply want to say I’m all new to blogging and actually liked your website. Very likely I’m going to bookmark your website . You actually come with tremendous well written articles. Thank you for sharing with us your web-site.

  • Its excellent as your other content material : D, appreciate it for posting . 788114

  • Chung Casarz  On May 17, 2012 at 8:09 am

    I simply want to tell you that I am new to blogging and really loved your website. Likely I’m going to bookmark your website . You really come with terrific articles. Thank you for sharing with us your webpage.

  • Millard Mangiamele  On May 17, 2012 at 12:08 pm

    Great website, thanks “cigar aficionado forum

  • aaron wall  On May 17, 2012 at 1:33 pm

    I like your writing style genuinely loving this internet internet site . 189670

  • porno streaming gratuit  On May 18, 2012 at 7:52 pm

    I like this web site so significantly, bookmarked . 34516

  • aşk büyüsü  On May 20, 2012 at 5:29 am

    woah i like yur internet site. It genuinely helped me with the data i wus seeking for. thank you, will save. 958082

  • Rear carrier  On May 22, 2012 at 7:13 am

    Some actually quality posts on this site , saved to favorites . 874577

  • httpwwwthreecreditreportcom  On May 22, 2012 at 11:59 pm

    I truly treasure your piece of function, Wonderful post. CHECK ME OUT BY CLICKING MY NAME!!! 592379

  • I enjoy this internet site, will surely arrive back. Make confident you carry on writing high quality posts. 117582

  • Maica  On November 14, 2012 at 2:46 am

    super thinking

Trackbacks

  • By low vitamin d symptoms on May 17, 2012 at 3:32 pm

    what causes low vitamin d…

    I am now not certain the place you’re getting your information, but great topic. I must spend a while finding out much more or working out more. Thank you for excellent info I used to be looking for this info for my mission….

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: