Hollande was elected one year ago, a sweeping, comprehensive victory that gave the French left complete control of the Presidency and parliament, giving him a mandate unseen in decades.
Hollande promised change.
- Higher taxes for the rich (A whopping 75% rich tax)
- Lower VAT
- Higher corporation taxes
- Crack down on tax avoidence
- Protect industrialisation in the country.
- Reverse unemployment by the end of 2013
Unfortunately it's not going to plan.
It started terribly with VAT going up and corporation taxes being reduced.
Francois Hollande lurches Right in historic U-Turn to save French economy - Telegraph
Hollande's team had to admit getting their figures wrong immediately after the election and infact needed to increase VAT and reduce business taxes. This started a drop in support that hasn't let up.
The 75% tax was struck out by the Supreme Court as being "unfair", but it still spooked the rich, with an increasing amount leaving. Beloved national hero Depardeau attracted the most attention by his flirtation with Russia and Belgium, but many companies chiefs have also left, and more importantly: Those companies are saying they're going to recruit management from outside of France as a result of this:
Top executives join France exodus - FT.com
In his (Second as president. Seriously) Thursday press conference he declared the worst over. On the day it was announced France is in a double dip recession.But Bernard Charlès, chief executive of Dassault Systèmes, was sharply critical of the high tax policies of Mr Hollande’s Socialist government, telling Le Monde newspaper in an interview: “Residing in France has become a big handicap. Very largely, our hiring of top managers will have to be done elsewhere than in France.”
The crack down on tax avoidance was hit when the budget minister had to be fired for.....avoiding taxes. In Switzerland. He's not exactly going quietly:
Industrialiastion....well no. Some of the sites Hollande actually campaigned at, promising keep open have closed, with a bit of a mess from the government about the possiblity of nationalising them:Meanwhile, Hollande’s disgraced former budget minister, Jerome Cahuzac – who lied to parliament about his tax fraud – has accused the president of “telling lies worse than his.”
Cahuzac said: “It is less serious to lie for 15 seconds before 577 MPs than to lie for a whole year about the state of France, as Francois Hollande has done.”
French steel furnaces mothballed amid ‘broken promises’ by Hollande | Inquirer Business
Unemployment is near 11% now (up 1% since he took over), a record high. Hollande made this his number one priority and it's stalling badly.
The social side has seen him utterly underestimate the ferocity of discontent amongst the minority of people opposed to gay marriage, which he signed into law this week.
Added to the above there's an upcoming documentary where Hollande allowed camera's to follow him around for his first months in office. By all accounts he comes out of it as dithering and unfamiliar with the details of issues.
It's all combined into a pretty horrific polling situation. He's now the most unpopular president ever with only 25% of people approving of him.
And Sarko hasn't gone away. Flush with cash from investment gigs, the feeling is that he's saving a warchest for the next election, one that he's predicted to win handily at this point.
The left need to have a period of introspection to decide how they're going to stabilise, because right now the house of French socialism is showing signs of collapse.