"Social VAT" Trade Wars Heat Up Between Spain and France
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Trade wars are on the horizon everywhere I look. Election politics have brought them to the forefront in France.
Via somewhat choppy but understandable Google Translation, please consider France to Increase the 'Social VAT' Before the May Presidential Election
The French government intends to implement the so-called 'social VAT' levied on products imported from countries with low production costs in order to apply a reduction in social contributions, before presidential elections next spring, as confirmed Budget Minister and government spokesman Gallo, Valérie Pécresse.Social and Economic Mistake
"The social tax to create jobs in France and to prevent imported products sold in our country at low cost is going to apply, and we will do before the presidential election," he said Pécresse told France Info.
The minister also said that this Budget proposal will be discussed with the French unions in the social summit is scheduled to be held on 18 January at the Elysee Palace.
In this regard, Bertrand defended the implementation of this measure by the "general interest" of employment and the country, and stressed that in France there are "too many burdens on the job." As an example, said that for every $ 100 of gross wages, account charges 39 euros in Germany, while France is 50 euros.
"I prefer to penalize imports, which have long criminalized the financing of social protection is now to finance social protection", had an impact.
Opposition criticism
Sarkozy's proposal to establish the social tax, announced in his speech on December 31 has been widely criticized by the opposition, including the Socialist Party, which sees as a "social and economic mistake."
The interesting thing is the Socialist Party understands the proposal to be a "social and economic mistake" (which of course it is).
When attempting to buy votes, no one cares about mistakes of any kind, and unfortunately private citizens (not politicians) suffer the consequences.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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