Friday, December 1, 2006

When all else fails, lower taxes

With his support slowly declining as Socialist Segolene Royal continues to benefit from her strong primary win, Interior Minister Nicolas Sarkozy has come up with something new: lower taxes. France is currently mandated by the EU to impose a 19.6% sales tax on food and drink restaurants, much to the chagrin of customers and the industry. Last year PM Jacques Chirac failed to get EU support for a lower tax, but Sarkozy apparently wishes to try again.

For Sarkozy this is at least a small step in the right direction. Not only is this in line with his pro-capatalist positions, but it is a fail-safe way to get some attention and votes away from Royal. He will still have to present a full and concrete economic proposal before this moves from being one small step to one giant leap for the struggling French economy.

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