France: economic future strangled
It seems that French President François Hollande reads W&D. It clearly is no coincidence that immediately following last week’s piece on the ossification of the French economy than M. Hollande announces tax cuts and government spending cuts. Some two-thirds of French tax-payers will see their tax bill fall next year.
Hmm, the election is two years out. But, sadly, M. Hollande appears unable or unwilling to undertake much needed structural reform, especially in welfare payments and industrial relations.
And W&D will bet that the tax cuts will proceed, but the spending cuts won’t.