Flip Flop, Flip Flop; Sarkozy Hell-Bent on Proving to the UK and the World that He Hasn't a Clue; Cardinal Rule of Allies

It is quite amusing to watch the self-destruction of Nicolas Sarkozy, president of France. Sarkozy got into a feud with UK prime minister David Cameron over a tax on financial transactions. Then under pressure from French banks withdrew support of the tax.

For a wrap-up, please see Triumph of One and the Price of Arrogance; Merkozy Treaty to Fail on Legal Grounds; UK Should Thank Sarkozy

One might think that Sarkozy would have had enough of self-inflicted damage, but one would be totally wrong. Flip-Flop, Flip-Flop is back again to flip.

Sarkozy to Announce VAT Increase of 1.6 Points, Introduce Tobin Tax

Via Google translate from Le Monde, please consider Sarkozy will announce Sunday a VAT increase of 1.6 points

Nicolas Sarkozy was expected to announce Sunday night a VAT increase of 1.6 point, we learn from several sources. VAT standard rate will be increased to 21.2%, a record in France. This increase is more limited than expected, will ease the burden on labor. This VAT is to take effect this year. The reduced rate would remain unchanged.

There will be no increase in the rate of the CSG on wages, an increase of taxation on property as possible.

The President will also announce the introduction of a Tobin tax to the French, a stamp duty extended. The implementing rules are not yet clear.

Companies with more than 250 employees, forced to have 4% of apprenticeship contracts will be subject to heavy penalties for noncompliance.

Why should the UK want to subject itself to this flip-flopping jackass? The appropriate thing for Cameron to do would be to stay as far away from Sarkozy as he can.

Cardinal Rule of Allies

Hard-line socialist candidate François Hollande is arguably a greater fool, but at least he would be easier to ignore, and more importantly, a person less likely to flip-flop.

It is better to have an enemy you can trust than an alleged ally that you can't.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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