Opinion

John Lloyd

France’s taxing expatriates

John Lloyd
Dec 26, 2012 18:32 UTC

Gerard Depardieu, 64 years old before the year’s end, is an actor of great range and talent. He could play the naïve, finally broken farmer in Jean de Florette; the heroic, swashbuckling, great-nosed Cyrano de Bergerac; the slobbish but romantic Georges in Green Card…and so on, and on, through scores of films and TV series, made at a rate of nearly five a year for over forty years. He acquired a fortune, restaurants, vineyards and many awards, capped by the Legion d’Honneur.

Earlier this month, he became an expatriate to escape French taxes. He returned his passport to the government, and moved from Paris to the village of Nechin in Belgium, just over the French border, where he joined a community of the French rich. They live there to enjoy the low taxes on stock and capital gains – low compared to those in France, where the Socialist government has imposed a marginal tax rate of 75 percent on incomes over 1 million euros ($1.2m).

He leaves in bitterness, with the curses of his government ringing in his ears. Jean-Marc Ayrault, the Prime Minister, said he was “shirking his patriotic duties.” He said that the rich were leaving “because they want to get even richer… we cannot fight poverty if those with the most – sometimes with a lot – do not show solidarity and a bit of generosity.”

For his part, Depardieu claimed he had paid 145 million euros ($190 million) in taxes in his career. “I am leaving,” he wrote in the Journal du Dimanche, “because you (the government) believe success, creation, talent, anything different must be sanctioned.”

In the markets and global financial institutions there’s a story building that France is a failure, and maybe even the next sick man of Europe. Louis Gallois, a prominent business figure, produced – on President Francois Hollande’s invitation – a report in October on how to buck up France’s economy, calling for a “competitiveness shock” that would include relaxing rigid labor laws and cutting taxes. These run counter to much in the Hollande program – he’s raised taxes, threatened to nationalize an Indian-owned steel plant that is closing and insisted that a 35-hour week, introduced by a previous Socialist government and much reduced by his predecessor Nicolas Sarkozy, will stay. In an interview, Gallois said that “there is not actually a consensus in France that companies must be competitive to create value” – a serious charge. The president welcomed the report, moved to implement some of it, then seemed to retreat.

Europe’s new, suicidal normal

John Lloyd
May 8, 2012 11:44 UTC

The world into which the new president of France, François Hollande, stepped this week is a suicidal one. Searching for a vivid image of Euro-desolation, the news media have lit upon suicides. Two suicides last month have stood out.

A 55-year-old man on the Italian island of Sardinia, who ran a little construction business with his sons in a mountain town called Mamoiada in the interior, killed himself when the business went bust. He was known only by the initials GM, and the town’s mayor says he was an industrious man with a close-knit family. His death shocked everyone.

Earlier in April, an older, Greek man, 77-year-old Dimitris Chrystoulas, a retired pharmacist, staged a more dramatic end to his life. Like GM, he said he wished to die with dignity; also like the Sardinian, he shot himself. But he did so in the central Syntagma Square in Athens, near the parliament, leaving a note that prophesied that the “traitors” who have brought Greece to destitution and enslavement to the will of international finance would be hung upside down in the square where he met his end, much like the way Italian fascist leader Benito Mussolini was executed in Milan.

As elections approach, France contemplates a bonfire

John Lloyd
Apr 13, 2012 18:29 UTC

It’s too early to hear the sound of the tumbrils rolling, or the excited click-clack of spectators’ knitting needles as the aristos are taken to the guillotine, but don’t bet that a modern bonfire of the pretensions of the very rich won’t happen, and maybe soon. (Peacefully, I hope: Revolutions are mostly horrible affairs.)

The French allusion occurs because the presidential election campaign opened officially there earlier this week, and the first round of the two-stage voting process will take place on Sunday Apr. 22. From the results of that first pass for the French people, we should see something of central interest and concern to our times, with an import far beyond France. We’ll see how mad people are, and how deeply (or not) they feel they shouldn’t take it any more.

The smart money remains on one of the two front-runners in the race: President Nicolas Sarkozy, the candidate of the right, who’s campaigning as if his life depended on it; and François Hollande, of the Socialist Party, an altogether more laid-back man whose travel-to-work transport was, until recently, a scooter (the kind with a motor – modesty has its limits). They both have been hovering below 30 percent in the polls, while 10 percent is taken by François Bayrou, a veteran campaigner and a liberal, centrist, sensible sort of man, who is trying to pump up votes for a job that is unlikely ever to be his.

  •