France: French PM announces plan to simplify tax system

French Prime Minister Jean-Marc Ayrault said on Monday he wanted to simplify the tax system, announcing a consultation process with the aim of proposing a broad tax reform to parliament by 2015.

The Socialist government has suffered criticism over tax increases introduced to shore up public finances, with business leaders saying an excessively complex and costly system is driving away investors.

"I think the time has come for a transparent overhaul of our tax system," Mr Ayrault told Les Echos business daily. "The objective is to come up with rules that are fairer, more efficient and easier to understand." "This overhaul will obviously require in-depth dialogue. I will meet all social partners in the coming days," he said, referring to business groups and labour unions.

Frustration over tax and unemployment stuck at 11 per cent, have dragged President Francois Hollande's approval rating to 20 percent, the lowest score for a postwar president, an Ifop poll showed.

A planned tax on heavy road transport provoked violent protests in western France where demonstrators torched toll gates, leading Mr Hollande to suspend the policy.

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France - European Union: French Prime Minister Jean-Marc Ayrault talks up economy - by Tanya Talaga

France is pursuing a series of ambitious reforms to fix its economic woes and strengthen the struggling European Union, French Prime Minister Jean-Marc Ayrault told a Bay St. crowd on Thursday.

Europe’s second-biggest economy has been teetering in and out of recession after the global collapse in 2008. To the dismay of the EU, the debt-laden French government announced last month it would not meet its promised plan to reduce the deficit by 3 per cent and instead set a 2 per cent target for 2013.

Ayrault, who was appointed by President François Hollande in 2012 to lead the government, put a positive spin on France’s strategy to modernize antiquated labour and public policies while at the same time trimming €60 billion from the budget by 2017.

“France has undertaken a vast set of reforms to get back on the path to growth through a restructured pact between heads of companies, employees and public authorities,” Ayrault said at the Empire Club on his first official visit to Canada.

The French also want the super rich to pay more taxes, a move that caused actor Gerard Depardieu to move to Russia after Hollande unveiled a plan to increase the top rate of income tax in France to 75 per cent for those who earn €1 million or more.

Read more: French Prime Minister Jean-Marc Ayrault talks up economy, European Union | Toronto Star

France: Good start for President Hollande - Ministers' Pay Cut On Agenda As New French Cabinet Meets

A pay cut for ministers in France will be on the agenda when the country's new cabinet meets for the first time today - even though it is a public holiday. Francois Hollande, who was sworn in as president on Tuesday, unveiled who would be filling the government's key posts - including Jean-Marc Ayrault as prime minister.

Mr Ayrault, a former German language teacher, has vowed to work quickly to get the country "back on its feet". That promise includes acting promptly on a campaign pledge made by Mr Hollande - a pay cut of 30% for his ministers.

"What's essential, and that's why the cabinet will meet as soon as Thursday, is to get quickly to work to allow France to get back on its feet in a just way," Mr Ayrault said.

"This is about setting an example... I will also propose a code of conduct.  Everyone must sign this commitment on conflicts of interest, holding more than one office and not carrying out any other activities."

Mr Hollande's new government includes mainly moderate Socialists and long-standing allies - but also meets a promise to appoint an equal number of men and women to the cabinet. While most of the senior jobs went to men, half of the 34 posts are now held by women - a first for France.

Read more: France: Ministers' Pay Cut On Agenda As New French Cabinet Meets | World News | Sky News