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In the Streets Marching for Our Rights

Volume XII, Issue 48

 

HOLIDAY HOME OWNERS ASSESSED HIGHER TAX!

Tuesday, France’s lower house of parliament approved the amended 2014 budget (298 votes to 238) which allows the levy of a new tax on secondary residences. They need cash to reduce their deficit and they don’t care how they get it — and in fact, without thinking of the consequences.

This second budget amendment this year does include a tax break — but one which will attract more international sports events.

The Senate will review the amended budget today with a final vote in the Assembly on December 18th. As one might expect from a Socialist government, the tax is targeted to affect the wealthy and foreign owners of properties left empty much of the year. It adds a 20% premium to the “taxe d’habitation” (paid by all homeowners), designed to stir the rental market and raise cash for local municipalities.

Will it work? My guess is that it’s likely going to backfire by reducing foreign investment and further pushing nationals into investing outside of their own country. I will not be surprised if they see their tax coffers reduce overall instead of increase as a result of over taxation, just as other measures these past few years have proven.

NOTAIRES AND LAWYERS TAKE TO THE STREETS OF PARIS!

Lawyers protest in Paris - Paris, FranceI saw them myself at Place de la République yesterday — the estimated 30,000 to 50,000 law professionals who had taken to the streets. All the representative organizations of legal professionals (notaries, lawyers, bailiffs, court administrators and agents, auctioneers, clerks of the commercial courts) demonstrated in Paris for the first time in history yesterday to protest against the proposed “Macron” law presented that morning by the Cabinet, chanting «Macron, ta loi, on n’en veut pas» and «Macron, tu n’es pas de notre galaxie» (“Macron, your law, we do not
want it” or “Macron, you’re not in our galaxy.”)

This bill aims to deregulate legal profession to encourage competition by making it easier for those with diplomas to start in the profession. It also aims to reduce legal fee schedules.

The law professionals complain that they work 70 hours a week, not 35 and while they are ready to evolve or reform, they believe this reform was put into place too easily.

What’s in the law exactly?

The following text is taken from LeMonde.fr and translated by Google Chrome:

1. The labor easing on Sunday and night: shops will work five Sundays a year without special permission, and up to twelve in total, with the approval of the town halls. In international tourist areas – mainly some districts of Paris – the opening will be allowed until midnight. Novelty introduced by the State Council before the presentation of the text by the Cabinet: all companies in the sectors of trade, regardless of size, must pay a “wage compensation” for employees working on Sundays.

Outstanding issues: in addition to the arguments of the traditional opponents at the end of Sunday rest, the controversy concerns the salary compensation, which should in principle be “important.” Employees must also be necessarily volunteer to work at night or Sunday. Much of the PS deputies opposed the reform.

2. The transport by coach: until now limited by complex authorization schemes, they will be liberalized. Mr. Macron made it a symbol, saying it was a measure to “the poor,” which could thus “easy travel.”

“At present, many French are too poor to take the train which is too expensive. Bus transportation is 8 to 10 times cheaper than the train. This liberalization of bus transportation will benefit to the poorest families, the most vulnerable, the most fragile.

According to the minister, the liberalization of the bus transport should create “tens of thousands” of jobs.

3. Regulated professions: newcomers installation (bailiffs, notaries, auctioneers) will be liberalized to encourage competition and allow the holders of diplomas to start. Fee schedules will also be changed for the acts “of everyday life and most real estate transactions” in order to reduce the price.

This reform causes a strong reaction from relevant professionals, lawyers bailiffs. They denounce the “commodification” of law “comes to the economy,” fear a decline in access to law, or predict the “death of the profession” of auctioneers or administrators and legal representatives, with thousands of losses of jobs to boot. They strike December 10.

4. The justice industrial tribunal: Another complex project, the industrial tribunal. The reform aims to simplify the procedures for reducing delays. The law provides for training counselors and sanctions for breach of professional ethics, and a status of union supporter and strengthening the power of labor inspectors and to court (umpire judge).

Unions are rather hostile to this reform, which they consider inadequate in several respects, including the principle of a “short circuit” decision considered too favorable to the company. They also denounce the end of the peer in the tribunal with increased supervision of the court.

5. The employee savings and employee ownership: the Macron law should simplify these devices to allow their generalization to SMEs, and make more attractive tax. The funds should also be used to further support the economy.

The Macron repeals the “profit-sharing bonus” of Nicolas Sarkozy , which required companies increasing their dividends two years following a redistribution in favor of their employees.

6. Five to ten billion sale of assets: the text discussed on Wednesday in the Assembly includes a section endorsing the sale by the State of five to ten billion euros of assets in companies. Four billion will be allocated to debt reduction, the rest back into the economy. The details of what will be sold has not been disclosed. Mr. Macron was content to specify that there was no question of privatizing EDF as could be mentioned.

7. Simplification measures: the law also provides for various measures, such as a business card into the building to prevent fraud and moonlighting.

And what’s not in the law?

The Macron law should contain many other reforms ultimately referred to other texts, in particular because of their controversial:

•    The reform of commercial courts that would appear in a draft judicial reform Christiane Taubira

•    The reform of pharmacy and prosthetic industry ‘s dental with simplified installation rules and “greater transparency of costs” is postponed too. It should be included in a future health law

•    The lawyer status for in (to allow lawyers to be employees of another lawyer or firm), a time mentioned, will not be in the bill

•    The issue of radioactive waste, already ruled out of the law on the energy transition of Ségolène Royal, was also introduced in the text, before being withdrawn under pressure from environmentalists.

What could resurface?

•    The renegotiation of highway contracts to reduce prices or increase the benefits for the state. Negotiations are also underway with the companys highway

•    The collective dismissal rules could be relaxed, but nothing is confirmed

•    The license could be reformed to reduce cost and time

•    The possibility for the government to use orders (without passing by the Parliament) to reform the medical work is also discussed.

Leave it to the government to find a majority to vote this law, which is not, at present, so easy. It is therefore likely that the Macron law will face further developments in its review, through parliamentary or governmental amendments.

Read more about the Loi Macron in Liz Alderman’s article in the New York Times.

BOSSES TAKE TO THE STREETS OF PARIS IN PROTEST, TOO!

Bosses demonstrate in Paris - photo by NY TimesAnother article by Liz Alderman in the New York Times reported on entrepreneurs who also took to the streets recently (nytimes.com/2014/12/02/business/international/s):

Yes, what a twist in the usual events where workers are in the streets, not the bosses. For years I’ve been joking that doing business in France is like being put in a straightjacket and asked to do somersaults. That’s what they’re saying, too now, with thousands of business owners marching in Paris and Toulouse revolting against government regulations and taxes that are making it virtually impossible to do business.

These are not the big blue-chip companies, but the small business owners who are struggling to keep their heads above water thanks to high taxation and complicated labor laws. Workers don’t get it…they think the bosses have all the fun and profit in business ownership. Those who own businesses know a different story and are finally taking to the streets to complain.

WE AMERICANS ARE NOT DETERRED!

In the midst of what seems like a bleak outlook for business and real estate professionals in France, the Adrian Leeds Group is forging ahead to provide our North American compatriots with the services they need and want related to property investmen
t in France.

Parler France Properties, SARLParler France Properties, SARL, a.k.a. Adrian Leeds Group, is a fully licensed real estate agency owned and operated by Americans living in France, designed to make high quality properties in France available to other North Americans (and other English-speakers) for rental and purchase.

Within the next few months, you will see our offerings grow and our Web site evolve to accommodate our new, bigger and better services. Stay tuned while you watch us blossom, in spite of the current economic crises in France!

Americans will be Americans wherever they are…and that means we can overcome just about any obstacle.

For now, view our current listings and ask about our property services.

A bientôt,

Adrian Leeds - French Property InsiderAdrian Leeds

Editor, French Property Insider

Email: [email protected]

 

 


P.S.
For those of you in the Los Angeles area, and would like to know more about investing in France, I will be available for private consultations between December 18th and 23rd. Consultations are typically two hours, and I will be offering a special rate in U.S. dollars. Email me to make your appointment: [email protected].

Brian Dunhill - Dunhill FinancialP.P.S. For expats who need assistance with financial planning, the Adrian Leeds Group recommends Dunhill Financial. To plan for your retirement, your savings for educational needs or to arrange your estate, Brian Dunhill is happy to discuss your options during a telephone consultation or face-to-face meeting. Visit Financial Planning for Expats for more information.

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