The fall of France was recorded surge of capital flight on a background that President Francois Hollande has initiated a tax increase and has stepped up its campaign against the rich.
Recent figures from the Bank of France show a sharp increase in the outflow in October and November, registered with the payment system of the European Central Bank's Target2, the newspaper writes The Telegraph.
Net capital outflow in two months was 53 billion euros, said the head of Henderson Global Investors, Simon Ward. And this is the time when the president announced a tax increase, and the relations of power and reach of local businesses collapse.
A key component of the money supply in France (real M1 for 6 months) reduced with record acceleration, since Hollande won the election in May. In the end, it fell to the levels that have not been observed since 2008, monetary indicators signal that the situation is more serious in France than in Italy or Spain. "If you put all together, it becomes clear that there was a significant drop in confidence and funds began to withdraw money from the country", — concluded Ward.
Although France is no serious risk of the debt crisis, it has the highest youth unemployment rate in two years, which reached 27%.
The economy can go into recession even before the Paris embodies the restriction of budget expenditures by 2% of GDP this year, which should take place within the framework of the agreements with the EU. Experts believe that the "double whammy" in the form of higher taxes and lower government spending may reach toxic mix for the economy in 2013