Socialist candidate Hollande defeats Sarkozy in French presidential race

Krugman Wishes He Were Wrong on EU
By Simon Kennedy on May 03, 2012

...“I wish I’d been wrong for the sake of the world,” Krugman said in an interview with Bloomberg Television’s Carol Massar. “You can see that there has been a definite shift in opinion.”

The euro area’s push to revive confidence in its economy and financial markets by attacking budget deficits will be challenged at the ballot boxes of France and Greece on May 6 as the region’s economy skids toward its second recession in three years and unemployment nears 11 percent.

Leading demands for a revised strategy, French Socialist Francois Hollande, a reader of Krugman, tops President Nicolas Sarkozy in the polls with the warning that putting debt-cutting over expansion is “bringing desperation to people.” Elsewhere, Greeks are turning to anti-austerity parties, recession-wracked Spain and Italy are relaxing deficit targets, the Dutch government is splintering and European Central Bank President Mario Draghi is calling for a “growth compact.”

...
In a camp that boasts fellow Nobel winner Joseph Stiglitz and former U.S. Treasury Secretary Lawrence Summers, Krugman’s voice has been loudest in warning that deploying austerity in a slump is self-defeating as it deepens the economic pain and can generate even higher debt. For pulpits, the 59-year-old Princeton University professor has a regular New York Times op- ed and blog. A book, “End This Depression Now!” was published this week and is already among the bestsellers on Amazon.com Inc.’s U.S. website.


‘Not a Whim’
“Francois Hollande has read Krugman,” Michel Sapin, one of Hollande’s economic advisers, said in an interview. “His writings show that Hollande’s proposals are not a whim and that this idea that growth is key is spreading.”...

BREAKING NEWS

Socialist Hollande beats Sarkozy to win French presidency

Socialist Party challenger François Hollande has beaten incumbent Nicolas Sarkozy in a tight run-off election to win the French presidency with 51.9% of the vote to Sarkozy’s 48.1%, Ipsos exit polls show.

http://www.france24.com/en/

Mr Sarkozy has admitted defeat, saying: "Francois Hollande is the president of France and he must be respected."
...
Mr Sarkozy, who has been in office since 2007, urged his UMP party to remain united, but warned he would not lead it into June's parliamentary elections, according to AFP news agency.

It quotes him as telling party leaders, as he read a draft of his concession speech: "Stay together. We must win the battle of the legislatives. I will not lead that campaign."

http://www.bbc.co.uk/news/world-europe-17975660

Juan Carlos Velaure, a 57-year-old lawyer, said he voted for Mr. Hollande because he was fed up with Mr. Sarkozy’s governing style and his conception of the presidency. “He ruled over everyone,” Mr. Velaure said.

He remained unsure, however, whether Mr. Hollande would be up to the task of guiding France and Europe through the economic crisis.

“I don’t know if Hollande will help, but he is changing minds in Europe” about the need to stimulate growth along with achieving fiscal discipline, he said. “The future of France is uncertain. I couldn’t say if feel optimistic or pessimistic at this moment. We will have to see what the future holds.”

http://www.nytimes.com/2012/05/07/world/europe/hollande-and-sarkozy-in-crucial-runoff-in-france.html?_r=1&hp

"Above 1m euros , the tax rate should be 75% because it's not possible to have that level of income," he said.

http://www.bbc.co.uk/news/world-europe-17189739

Table: French Wealth Tax Bands 2011
Fraction Taxable Rate of Tax
€1,300,000 - €2,570,000 0.75%
€2,570,000 - €4,040,000 1.00%
€4,040,000 - €7,710,000 1.30%
€7,710,000 - €16,790,000 1.65%
Over €16,790,000 1.80%

http://www.french-property.com/guides/france/finance-taxation/taxation/wealth-tax/rate/