Sarkozy rushes to cut labour costs

Article reported that a reform of the way France finances its welfare programmes, shifting the burden from employment charges to sales tax (VAT), was to be put to the French parliament in February 2012 in an attempt to enact the change before Nicolas Sarkozy faces Presidential re-election in April 2012.

Confronted by rising unemployment, stalling growth and weak opinion polls, President Sarkozy was said to be keen to show that he was taking decisive action to confront the economic crisis.

The tax plan was the most significant of a series of initiatives the President unleashed in early January 2012, including a move to accelerate the introduction of a levy on financial transactions and efforts to save jobs in industrial sites threatened with closure.

ESO: Background information: France to hold jobs summit as unemployment hits 12-year high http://www.europeansources.info/record/france-to-hold-jobs-summit-as-unemployment-hits-12-year-high/

ESO: Background information: France to push ahead with ‘Tobin tax’ proposal http://www.europeansources.info/record/france-to-push-ahead-with-tobin-tax-proposal/

ESO: Background information: French presidential election, 2012 http://www.europeansources.info/record/french-presidential-election-2012/

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