The election of Francois Hollande to President of France is the beginning of a new era in Europe. The Socialist, nicknamed “Flanby” after a popular dessert, has many ideas and proposals that will not only affect France, but the European Union as well. A few of these ideas will likely effect the economy of France, and even of Europe.
1) Hollande’s Wants a Tax of 75% On Those Who Earn €1 M Or More
In order to help France recover from the worldwide economic crisis, Mr. Hollande would much rather impose taxes then cut back on government spending. Recently, he proposed a 75% tax on people who earn one million euro or more anually, calling it “patriotic”and necessary in order “to get the country back on its feet”¹. This caused an uproar among his opponents, yet it did not prevent him from winning the elections.
2) Flanby Is Vehemently Anti-Austerity
In many European countries, austerity, or cuts in government spending, has been denounced by the populace as an unsuccessfull way to solve the economic crisis. Hollande agrees with these people- as stated above, he would rather tax the rich than stop spending money. However, Germany, one of the powerhouses of the European Union, still supports austerity. This could lead to serious conflict between France and Germany because Germany “the final say in every bailout negotiated by the IMF, EU, and ECB”². Hollande and Angela Merkel, the Chancellor of Germany, may clash over how to save the European Union.
As the new President of France, Francois Hollande has the responsibility of bringing France back from a devastating recession. If the rest of the European Union agrees with his ideas, much good may come to France and Europe. If they don’t, however, Hollande will be no more useful than a half-eaten piece of cake.
1. “French Election: Hollande Wants 75% Tax on Top Earners.” Bbc.co.uk. British Broadcasting Corporation, 28 Feb. 2012. Web. 07 May 2012. http://www.bbc.co.uk/news/world-europe-17189739.
2. Prial, Dunstan. “Shelving Austerity for Growth Poses Big Risks in Europe.” Foxbuisiness.com. FOX Buisiness, 7 May 2012. Web. 07 May 2012. <http://www.foxbusiness.com/markets/2012/05/07/shelving-austerity-for-growth-poses-big-risks-in-europe/>.