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Latest update: 11/07/2012
- David Cameron - François Hollande
'No mass exodus to UK' French MP tells FRANCE 24
The MP who represents French expats in Britain poured scorn on the notion there was about to be a mass exodus of tax exiles across the channel after French President François Hollande promised a 75 percent tax rate on top earners.
By Ben MCPARTLAND (text)
French nationals wanting to avoid hefty tax rises will not be upping sticks and heading to the UK in droves, according to France’s MP for expats living in Britain.
Axelle Lemaire, France’s National Assembly MP for Northern Europe including the UK, has poured cold water on the idea that thousands of France’s high earners will flock to Britain to avoid their home country’s top tax rates.
Her comments come on the day Francois Hollande made his first visit the the UK as French President, where he met with both the Queen and the British Prime Minister David Cameron.
Much was made in the build up to the trip about the expected tense relations between the two heads of state, sparked largely by Cameron’s recent promise to roll out the red carpet for high earners wishing to leave France for sunnier financial climes.
Canadian born Lemaire, 37, said only a small minority cross the channel for tax reasons.
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“Before the election I kept repeating that the preconception that people move for tax reasons does not reflect the reality of the majority of French people who live in UK,” Lemaire told FRANCE 24.
“Most of the French people who come to Britain come for professional reasons, because they find a job or for personal reasons, because their partner lives here."
“I haven’t noticed a big move to London since Francois Hollande was elected”
Lemaire, elected to the National Assembly in parliamentary elections last month, was among around 1,000 members of the French community who met with Hollande on Tuesday morning.
She said there are other factors that might dissuade many of those top earners from moving to Britain.
“People want good hospitals and good schools for their children,” she said. “The level of taxation is one thing, but if they agree with the shared common values of France then I don’t see why they would evade their tax duties.”
“I haven’t noticed a big move to London since Francois Hollande was elected," she said. "Those who move to avoid tax are in the minority.”
Cameron’s "red carpet" comments came after the French president sent blood pressure rising among the country’s most wealthy with his proposal to introduce a 75 percent top tax rate.
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But Lemaire, whose consituency stretches from Britain to Scandinavia, told FRANCE 24 tax policies must be decided upon merit and not fear.
“We should not be deciding on policies becasue of the threat that many people will leave the country to avoid paying their taxes," she said.
Hollande’s decision to raise funds by taxing the weathly has contrasted starkly with the Cameron government’s recent decision to abolish the UK's top rate of tax whilst it continues to impliment strict austerity measures.
The 75% levy is not the only area of tax policy that set the two leaders on a collision course before Tuesday’s talks.
Hollande wants to introduce a charge on financial transactions, sending shockwaves around the City of London.
“Francois Hollande was elected on a mandate from the French people to introduce the financial transactions tax, but he respects the fact the British government does not want to do the same,” Lemaire told France 24.
“Differences of opinion”
Hollande’s government also worried Downing Street with its plan to almost double the tax on non-residents who own second homes in France -- of which there are around 200,000 Britons.
But, as Lemaire rightly points out, this tax would also impact on her French constituents who still own second homes back in France.
“Hollande has said the burden of debt will have to be shared by everyone, and that includes those who own property in France,” Lemaire said.
Hollande and Cameron were eager to present a united front at a joint press conference today, with the British PM insisting he would forge a “strong relationship” with his French counterpart.
But with a clear divergence of opinion on certain issues, their blossoming bond will no doubt be tested in the coming months.
“There are differences of opinion but that is why it is important for Mr Hollande to have a strong personal relationship with Mr Cameron.They will need to build up that rapport and be able to talk one-to-one, whatever the circumstances,” Le Maire pointed out. “They know it is in both their interests to cooperate. They seemed to get along well today."
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(12) Reactions
British schools and hospitals
What's the problem with schools in Britain? Well, no French would want their kid to learn in a British school as long as there is a monarchy in your country. Let's be serious. We have to understand that quality of teaching is also measured by the content of teaching's quality. Not teaching a child to think for the future, but to obey by some medieval rules is not a French's option. As for the hospitals, the NHS is poorly equipped with an underpaid staff. What quality can one expect from it? The press if full of horror death stories in the NHS hospitals. British people don't have to admit these objective facts if they are not psychologically prepared. But that is not my problem.
British schools and hospitals
What's the problem with schools in Britain? Well, no French would want their kid to learn in a British school as long as there is a monarchy in your country. Let's be serious. We have to understand that quality of teaching is also measured by the content of teaching's quality. Not teaching a child to think for the future, but to obey by some medieval rules is not a French's option. As for the hospitals, the NHS is poorly equipped with an underpaid staff. What quality can one expect from it? The press if full of horror death stories in the NHS hospitals. British people don't have to admit these objective facts if they are not psychologically prepared. But that is not my problem.
Tax in France
I have some bad news for Mr Holland. Taxing the rich is not going to solve anything. The problems with Europe is that high wages has made products uncompeditive and this is causing higher unemployment. Making Taxes higher will mean wages will go up. This means products will be even more expensive and will lead to even higher unemployment. As for the rich, they give work. If they leave then unemployment will also increase. Mr. Holland has to think again. Its all good being a socialist. But if it doesn t work its not going to be good for France.
Education
UK is usually near top in international league tables for universities
Not up to date with the facts and figures.
Ms Lemaire does not have a clue about the reality of the situation with French Nationals wanting to move to Britain. The education system in France has deteriorated; the ordinary French people are struggling to buy basic foods; more and more street markets are being held in every town in the country where the farmers try to sell their produce. Mme Lemaire should face realities and not just make statements which are not true. Check out the number of French people coming to London and the South Coast of England to shop- it is cheaper even after paying for their travel. They are sometimes shocked to find that French products are cheaper here than in their own country. Get real!
over to you!
Where is Mm Bettancourt when I so badly need her.
She could do me a favour and fund my emigration to France, If I could afford it, even if I had to pay 75% tax, I would be there as fast as I could get over La Manche.
The way this country has gone over the last three or four decades, it's not worth living here any more,
I travel to France at least once, some times twice a year on vacation, it is when I am compelled to catch the Dover bound ferry, or enter the Tunnel I start trembling with annoyance.
If not Mm Bettancourt, is there any other kind French person looking to be magnanimous?
Taxes
While America has had extremely high tax rates, many did not pay that as there were ways to avoid it. The Eurozone is in big trouble as they now will try and take more than they put in. Taxing more inhibits the collection of revenue and causes increased resentment of government. Politicians who promise prosperity by plunder will soon lower their standards to include everyone and keep the plunder for themselves.
Taxes
I think simplistic has it right. It is too early to judge but the tax increases along with the legal case against Telecom CEO may well make firms think twice about locating in France. Companies in France have to compete with companies in other areas and cannot factor in the social costs and still make a profit. Economically France does not exist in a bubble.
Enlightened
I only wish the US could be as enlightened as the French when it comes to financial reform. When our top tax rate was 72% in the 60s, real income rose 35%! Then Nixon began the conservative deconstruction of the economy that Reagan, Newt and Bush finally destroyed.
simplistic
Mme. Lemaire's comments, so soon after the announcements in question, bespeak a far too simplistic response to the potential fallout from the increased taxes on the wealthiest earners and M. Hollande's handling of the larger business sector. The new government's current policy initiatives and proposed economic changes will, over the longer term, drive investors and entrepeneurs out of France, and will lead those who might otherwise have have come to live here to stay away in droves. There will be more mass layoffs (see today's headlines regarding the French auto industry) and closures; there will be further critical slowdowns in growth as M. Hollande and company grind the "evil rich" and pander to unions that already have far too much power over the French economy.
I don't doubt the good intentions of the new government, economically and otherwise. Still...we do remember which road is paved with good intentions, don't we?