French Business Lobby Not Happy With 2014 Budget

Despite the pro-business tone of France’s 2014 budget, the country’s largest business lobbying group said the proposals presented by the government on Wednesday were a blow for competitiveness, growth and jobs.

“We’ve got a problem with this French budget,” Pierre Gattaz , the head of France’s Mouvement des entreprises de France (MEDEF), told CNBC, following the government’s budget presentation, which announced 15 billion euros ($20.2 billion) of spending cuts and 3 billion euros of tax increases.

Although the tax hikes will mainly hit households and consumers – via higher sales taxes and social insurance contributions — the budget also included a new levy on operating profits and a 75 percent tax rate on salaries of more than 1 million euros, to be paid by companies rather than employees.

via CNBC

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