French Austerity measures

useless_git_requires_wife

According to The European Institue:

France- The government’s budget is aimed at lowering the deficit to six percent of GDP in 2011, three percent in 2013 and to two percent in 2014. Parliament voted to raise the retirement age to 62 (from 60); the pay-as-you-go pension system is being raised by half a year to 41.5 years of required work for full pension; a three-year freeze on public spending is under consideration; pension contributions from employees’ pay will rise to 10.55 percent from 7.85 percent; income taxes for the highest income group will rise by one percent and an one-off corporate tax break will be eliminated. Under these plans, a total of €45 billion a year will be cut from government spending over the next three years.


Edit: I'll bet the proposed vote on a 3 years freeze on public spending wont happen this side of next year's elections.

useless_git_requires_wife

Acording to the BBC (more up to date than above)....

France:

France has announced plans for 65bn euros of savings by 2016. It aims to close tax loopholes and withdraw temporary economic stimulus measures.
The highest earners will also be required to pay an extra 1% income tax.
VAT on many goods and services will be raised from 5.5% to 7%, except on essential goods such as food.
Corporate tax on companies with a turnover of more than 250m euros a year will also temporarily be raised by 5%.
With a presidential election looming next year the government is anxious to protect France's triple-A credit rating.
But the plan to raise the retirement age from 60 to 62 and the full state pension age from 65 to 67 provoked major protests and strikes last year.

Rochdale_Pioneers

Pete111 wrote: »

You jest surely?

Ed regularly gets 'flashman'd' at PMQ's!

I'm going off what all the commentators say.

Not that it matters - Hague regularly wiped the floor with Blair.

wellused

According to an online German Newspaper Sarco's ratings have soared just lately due to his sterling work in solving the euro crisis.
http://www.spiegel.de/international/europe/0,1518,804595,00.html

Franglais

Generali wrote: »

TVA has always been payable on restaurant bills at almost 20% from memory. Take away used to be TVA free so maybe it's that you're thinking of. Unless things changed in the last couple of years or so.

TVA on restaurant / cafe food has been 5% for a couple of years now but it's going up to 7%.
TVA on property renovations (when carried out by a registered builder) is going up from 5.5% to 7%
CGT on 2nd homes is changing so it takes 30 yrs for the taper relief to get to 0% (used to be 15 yrs)
Social Charges for investment income is going up from 12% to 13%
UK pension lump sums are now taxable at 13% under the new double taxation treaty between the UK and France

TBH it's nowhere near enough. The french will tax themselves out of existence rather than cut their bloated public sector (nearly 60% of the workforce...:eek:)

ILW

How does an economy survive when 60% of the workforce are public sector?

Generali

ILW wrote: »

How does an economy survive when 60% of the workforce are public sector?

It won't, assuming the statistic is true.

Pont

ILW wrote: »

How does an economy survive when 60% of the workforce are public sector?

It doesn't!

It may blindly continue 'bumping along' for some years but obviously is unsustainable in the long term. Ultimately, if we take the 60% quoted as being unproductive (do not produce goods themselves for either the home or the export market), together with a further 20%+ of either unemployed or retired (receiving from the system rather than contributing towards), then you are left with 20% (or less) contributing towards the sustainabilty of 80%.

All countries are large households - it's all quite simple economics. To run my household I MUST earn (produce) more than I pay out. If I don't/can't earn a sufficient amount I will either have to pay my bills via credit (and be able to make the additional payments) or do without - simples!

All of our countries leaders (and I use that term despairingly!) have tried the credit approach and can't make the interest payments, so now we all have to do without.

France - every city, town and village exhibit beautiful floral dispalys, the road network is fantastic etc. etc. but it's all 'unproductive'.

Generali

ILW wrote: »

How does an economy survive when 60% of the workforce are public sector?

Where does the 60% come from ILW? The OECD reckon that it's 22%:

http://www.oecd.org/dataoecd/35/42/43925776.pdf

ILW

Generali wrote: »

Where does the 60% come from ILW? The OECD reckon that it's 22%:

http://www.oecd.org/dataoecd/35/42/43925776.pdf

I just picked it up from a previous post. It must be true.