World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
France Raises Taxes in Tough Budget
Keywords:
Deocuments from the weekly cabinet meeting show the new budget in France will increase revenues from household income taxes by 23%, and business taxes by 30%. The top marginal income tax rate goes up to 45% from 41%. Limiting a deduction for financial charges for company's taxable income brings in $4 billion in 2013, according to the finance ministry. The goal is to cut the budget deficit to 3% of GDP in 2013 from 4.5% in 2012. The finance ministry has assumed higher borrowing rates for future years- 2.9% on 10 year debt for 2013, up to 3.65% in 2015, and is not relying on the low rate of 2.18% on 10 year government bonds as reported by Trade Web Sept 28, 2012. The overall tax burden will be 46.3% in 2013, and 46.7% in 2015. French debt is at 91% of GDP for the 2nd quarter 2012, expected to be 91.3% in 2013 and falling to 82.9% in 2015. Prime minister Ayrault emphasized- "If we don't put a stop to this, taxpayer money will keep paying for debt reimbursement." Swift anticipatory action and unified government-business-labor posture under a favorable borrowing environment characterizes the approach for Britain and France in 2011-2012, compared to the situation in Spain where government action has been slow, not tough enough in cleaning up the banks, fallen behind in anticipating events and the government-business-labor unified posture has cracked under the strain. As a result under an unfavorable borrowing environment money raised from austerity type tax increases now goes to paying for debt reimbursement in Spain, leading to a situation in which debt and deficit reduction targets just get harder to achieve. A looming drop in credit ratings to junk status for Spain only makes the situation harder to overcome.
France's president Hollande's revision of the 2012 budget
06/23/2010
Grouped Articles
Wall Street Journal 05/29/2013
France Says It Will Miss Budget Deficit Targets
Wall Street Journal 09/12/2013
France's Lagarde Forecasts Austerity
Wall Street Journal 06/23/2010
France's Hollande Replaces Prime Minister Ayrault with Manuel Valls
Wall Street Journal 04/01/2014
EU Won’t Reject French, Italian Budgets
Wall Street Journal 10/28/2014
European Union Blinks in Budget Battle With Italy and France
New York Times 10/28/2014
France's 2013 budget and the deficit
06/23/2010
The budget has higher taxes on business and the rich to meet deficit reduction goals just as the economy is stalling.
Grouped Articles
Europe to Vote on Tougher Rules for Currency
New York Times 09/27/2011
Hollande Boosted by French Growth
Wall Street Journal 08/15/2013
France Says It Will Miss Budget Deficit Targets
Wall Street Journal 09/12/2013
German Optimism Depends On Spanish Deficits
Wall Street Journal 09/25/2013
France's Lagarde Forecasts Austerity
Wall Street Journal 06/23/2010
Euro Zone Deficit Hits Target for First Time Since 2008
New York Times 04/23/2014
Sarkozy and Hollande economic policy measures and France's economy 2012-2014
04/17/2012
Grouped Articles
France Goes Against the Euro-Zone Flow
Wall Street Journal 04/18/2013
Wall Street Journal 05/29/2013
A Proud Nation Ponders How to Halt Its Slow Decline
New York Times 08/24/2013
France Says It Will Miss Budget Deficit Targets
Wall Street Journal 09/12/2013
German Optimism Depends On Spanish Deficits
Wall Street Journal 09/25/2013
French Cabinet Is Dissolved, a Victim of Austerity Battles
New York Times 08/25/2014
Spain's cleanup of bad bank assets under prime minister Rajoy in 2012-2013
09/28/2011
Grouped Articles
Wall Street Journal 09/28/2011
Spain Emerges From Recession but Sees More Austerity Ahead
Wall Street Journal 09/23/2013
Spain Weighing a Fast, Costly Cleanup of Banks
Wall Street Journal 12/07/2011
Why European Banks Are Sacrificing Growth
BusinessWeek 12/15/2011
Spain's Rajoy Takes Aim at Deficit
Wall Street Journal 12/20/2011
A Central Bank Doing What Central Banks Do
New York Times 12/21/2011
Spain's banking officials, lack of prudent oversight over the banks and bad loans from the real estate bubble
02/22/2011
Jaime Caruana, Rodrigo Rato and Vinals are senior Spanish banking officials who worked for the central bank and at the IMF. Caruana is head of the Bank of International Settlements in Bases (BIS), and Vinal heads a department at the IMF. Rato resigned from Bankia bank after its takeover by the government. Experts say they failed to exercize proper oversight of Spain's banking system and in their positions at the IMF failed to draw early attention to the problems.
Grouped Articles
Investors in Bankia to Sue Bank of Spain Over Losses
New York Times 05/09/2013
Wall Street Journal 09/28/2011
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Rodrigo Rato Resigns as Executive Chairman of Bankia
New York Times 05/07/2012
Spanish Officials Hailed Banks as the Crisis Built
New York Times 06/26/2012
Spanish Woes Cast Rescue in New Light
Wall Street Journal 06/20/2012
Spain's Cajas savings banks
02/25/2010
Grouped Articles
Spanish Banks More Vulnerable Than Italy's
Wall Street Journal 07/13/2011
New York Times 05/17/2013
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
Economist 05/29/2010
Spain's cajas: Thinking outside the box
Economist 07/31/2010
Spain's banks: Two cheers, three tiers
Economist 10/02/2010
A detailed account of the unfolding crisis at Bankia bank in Spain during 2011-2014
04/01/2009
An account of the key players and the ufolding of critical events in the IPO offering for Bankia, and the unraveling of the bank in the months that followed, as the Spanish regulators and government failed to get a handle on problems and instead put their hope on an improving economy. On May 3, Mario Draghi warned about the problems at Bankia in Barcelona. On May 4, the heads of Spain's largest banks BBVA, Banco Santander and Caixa, told the government it had to takeover Bankia, setting in process the events leading upto the acceptance of $125 billion in EU aid to recapitalize Spain's banking system. Bankia was put together from seven failing cajas savings banks. The problems related to the housing bubble are seen throughout the cajas savings banks.
Grouped Articles
Spanish Banks More Vulnerable Than Italy's
Wall Street Journal 07/13/2011
Investors in Bankia to Sue Bank of Spain Over Losses
New York Times 05/09/2013
Wall Street Journal 09/28/2011
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
Economist 05/29/2010
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Frances's president Hollande's plan for investment in education and Shiller's metaphor of "winter on the family farm"
05/19/2012
Shiller evaluates the Hollande plan using the Salant-Samuelson balanced budget theorem and shows that it would increase national income by the amount of the tax on higher incomes. It would create a more productive economy with investment of the type that occurs in winter on the family farm.
Grouped Articles
New York Times 04/13/2013
Wall Street Journal 05/29/2013
A Proud Nation Ponders How to Halt Its Slow Decline
New York Times 08/24/2013
EU Won’t Reject French, Italian Budgets
Wall Street Journal 10/28/2014
European Union Blinks in Budget Battle With Italy and France
New York Times 10/28/2014
How National Belt-Tightening Goes Awry - Economic View
New York Times 05/19/2012
Contrasting approaches of France and Britain in tax policies and foreign investment
07/10/2012
Higher tax rates in France and Hollande's call for the French to see this as a form of patriotism by contributing to reduce the public debt. Britain's Cameron takes a different approach by reducing taxes. Cameron's remark about a red carpet for foreign investment is taken by Hollande as a form of British humor.
Grouped Articles
Wall Street Journal 05/29/2013
Wall Street Journal 06/26/2013
A Proud Nation Ponders How to Halt Its Slow Decline
New York Times 08/24/2013
Tax rates in Britain: François Miliband
Economist 02/04/2014
France Tries to Tempt In More Foreign Investment
New York Times 02/17/2014
In U.K. Visit, Hollande Urges Unity to Cut French Debt
Wall Street Journal 07/10/2012
The German parliament's vote in July 2012 on the $125 billion loan committment to Spain's banks
03/11/2011
The need for opposition support to pass the legislation required to provide loans to Spain's savings banks. A committment of $125 billion in loans to Spain's banks was made by the EU. The efforts of the Merkel government to win popular support from a skeptical German public includes videos on YouTube in July 2012. The opposition SPD says it will look at the loan arrangements carefully to make sure this leads to a healthy Spanish banking system with the required changes being made at the banks.
Grouped Articles
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
German Parliament Approves Greek Bailout Negotiations
Wall Street Journal 07/17/2015
Germany Makes Last Pitch Before Vote
Wall Street Journal 07/18/2012
German Parliament Backs Spanish Bank Plan
New York Times 07/19/2012
Spanish Bank's Ex-Leader Defends His Record There
New York Times 07/26/2012
France Raises Taxes in Tough Budget
Wall Street Journal 09/28/2012
William R. Cline's estimates that show a positive outlook for Spain and Italy's debt and the eurozone by 2020
01/04/2011
Cline is an analyst with a good reputation going back to the Latin American crises of the 1980's. His most recent working paper shows estimates of Spanish and Italian debt that suggest a positive outlook for the long term if the measures taken now to contain debt are continued.
Grouped Articles
Euro Strengthens as Fears Fade
Wall Street Journal 01/12/2013
Spain and Italy Are (Probably) Fine
Wall Street Journal 08/14/2012
France Raises Taxes in Tough Budget
Wall Street Journal 09/28/2012
Beijing Signals Interest in Spain Debt
Wall Street Journal 01/04/2011
Italy Needs a Growth Renaissance
Wall Street Journal 06/24/2011
Spain's banks and housing construction in 2011-2012
02/25/2010
Continued construction in housing suported by Spanish banks in 2011-2012. This is happening when a huge inventory of residential units estimated by some analysts at over 1 million remains unsold. It could further dampen home prices.
Grouped Articles
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
Spain's banks: Two cheers, three tiers
Economist 10/02/2010
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Spanish Banks Try to Build Their Way Out of Home Glut
Wall Street Journal 01/11/2012
Spain Spells Out Latest Plan to Bolster Health of Lenders
Wall Street Journal 02/03/2012
Wall Street Journal 02/08/2012
Spain's Bankia bank
10/02/2010
The consolidation of a number of Spanish savings banks under government direction led to the creation of Bankia, Spain's third largest bank. Efforts to recapitalize these banks which have large accumulated large debt from the real estate boom is part of the Spanish government's effort to tackle the debt crisis facing Spain. Rodrigo Rato, a former finance minister and managing director of the IMF, heads Bankia and the effort to restore confidence in Spain's banking system.
Grouped Articles
Spanish Banks More Vulnerable Than Italy's
Wall Street Journal 07/13/2011
Investors in Bankia to Sue Bank of Spain Over Losses
New York Times 05/09/2013
Spain's banks: Two cheers, three tiers
Economist 10/02/2010
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Spain Launches Privatization of Bankia
Wall Street Journal 02/28/2014
A Former IMF Leader Tackles IPO Challenge
Wall Street Journal 06/08/2011
Five Rules for tackling the economic crisis and how Spain was slow to act compared to more aggressive steps in Britain and France
09/28/2011
One of the "must do" critical rules is that strong aggressive action and sound steps be taken early when borrowing rates are still favorable and there is time to respond and bring the debt situation under control. French prime minister Ayrault puts this succintly: "If we don't put a stop to this taxpayer money will keep going to pay for debt reimbursement." Britain has an extra margin of safety because of its established banking systems and experience, France because of support from Germany, a stronger economy and industry-government cooperation, Spain and Italy lack this extra margin of safety and needed even more vigilance and aggressive steps.
Grouped Articles
Wall Street Journal 09/28/2011
Wall Street Journal 06/01/2012
In U.K. Election, It’s Jobs Boom vs. Stagnant Wages
Wall Street Journal 05/07/2015
France Raises Taxes in Tough Budget
Wall Street Journal 09/28/2012
France's New Budget Focuses on Cutting Deficit
New York Times 09/28/2012
Spain Needs $76 Billion to Recapitalize Its Banks, Audit Finds
New York Times 09/28/2012
Four Rules for Tackling the Economic Crisis and how actions by Britain and France differ from Spain
06/01/2012
Linked Articles
France Raises Taxes in Tough Budget
Wall Street Journal 09/28/2012
Wall Street Journal 06/01/2012
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us