In a bold statement on national television, French President Francois Hollande declared that he would turn around the currently moribund domestic economy in the next two years, with a €30 billion austerity plan as part of his remedy to combat criticism that the socialist leader has been too conservative. The plan comprises of a inflation adjusted savings of €10 billion from holding down state spending next year, albeit in nominal terms, excluding state pensions and the cost of servicing debt. The remaining €20 billion will be raised purely from tax rises, with the wealthiest individuals and companies to be targeted, leaving in place the controversial 75% on incomes that exceed €1 million that has prompted France’s richest man, Bernard Arnault, to announce that he seeking dual Belgian citizenship to avoid paying the tax.
Using subsidies, Hollande wants to create 80,000 extra jobs, with a further 60,000 positions set to be created in the education sector, alongside a ’generation contract’ attempting to reduce chronic youth unemployment.
Francois Rachline a special adviser to the president of the Economic, Social and Environmental Council (ESEC), a consultative assembly to the government, said: “ He has been reticent so far in his leadership, and I don’t think that the President is right to weight the plans to much towards tax rises. I would have like to have seen more decisive action on reducing the budget deficit, there should be been more spending cuts that tax rises. Why does he have to wait until next year, why not start now.”
Read more: Francois Hollande sees a different way out | New Europe
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