France President Announces rise in taxes and increasing the workday

The French President, Nicolas Sarkozy, yesterday announced an increase to the value added tax (VAT), a rate financial transactions and the home from morning of negotiations on a "contract of competitiveness" which means the effective end in France of the 35 hour workweek.

In an interview granted live from the Elysee Palace and broadcast simultaneously from nine channels, Sarkozy announced an unpopular increase of 1.6 points from the maximum rate of VAT from October of 19.6 to 21.2 per cent, and that said that it will not be reflected in an increase in prices "because competition will keep them".

As the rate on financial transactions, Sarkozy said that "three years ago finance have behaved in a crazy, unregulated manner." "It is normal that transactions involved in reimbursement of deficits".

This rate to 0.1 percent financial transactions will begin to be applied to u000astarting from August and was one of the measures which it hoped in that it is adopted by other countries of the eurozone.

Sarkozy explained that you announced these measures, as head of State and not as a possible candidate for the presidential elections this spring," to boost employment and competitiveness "of the French companies".

The measures include a controversial effective abrogation of the 35 hour workweek, by means of a so-called "contract of competitiveness" that allows employers to adapt to the needs of the market.

The Prime Minister, François Fillon, will begin to prepare from morning contacts that lead to that contract "is imposed to the law and individual agreements", and that will allow companies in distress to increase working hours without that increase involved a rise in wages.

And with regard to the proposal of the Socialist candidate, François Hollande, restore the retirement age to 60 u000ayears, Sarkozy considered that this step is "a" folly that is not being carried out, and that in his view any French is believed to.

The televised Sarkozy interview occurs before the first round of the presidential elections in France, scheduled for 22 April, and at a time in which all polls point as a favorite to the Socialist candidate François Hollande.

"The measures taken have enabled to stabilize things." "Has been laid the Foundation for the financial stability of the world and Europe," said Sarkozy, who explained that the objective of this televised speech is "accountable" to the public French.

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