Cartoonist Peter Schrank of the Economist gets to the essence of the socialist victory in France today: it’s not fun to pay off one’s debts. Pierre of France like Willem of Holland behind him want the spending party to go on indefinitely.
And François Hollande, the Socialist president elected today, plans to spend his way to new jobs. But where will the money come from? Hard to say, but one answer he has hinted at is to charge temp staffing firms more for employment related taxes.
He especially wants to attack the practice now widespread in France (see chart) of using continuously renewed temp staffing assignments to avoid employment laws intended to protect people with ‘permanent jobs’.