SHARE
COPY LINK

CORRUPTION

Plan to ‘clean up’ politics turning into French farce

President François Hollande's campaign to clean up French politics after the Cahuzac Affair began in earnest this week, with a demand for cabinet ministers to make their assets public. His attempt at 'transparency', however has been mocked in some quarters.

Plan to 'clean up' politics turning into French farce

President François Hollande's efforts to "go all the way" to clean up French politics in response to the scandal over former Budget Minister Jérome Cahuzac’s secret Swiss bank account, are well underway.

He has demanded that ministers publicly declare all their assets by April 15th at the latest, and has encouraged all elected deputies to follow suit.

However the move aimed at "moralisation", which would bring French politicians into line with their counterparts across Europe, has been criticized and ridiculed as pointless 'voyeurism' in some quarters of the press and among politicians. 

Some ministers have enthusiastically opened their books to the public through their own blog entries and Facebook posts, revealing everything from Renault Twingos to luxury furniture. One politician, although not a minister even revealed her "high value" carbon kayaks.

This however has lead to the declarations being mocked by elements in the French press, as well as by legions of Twitter users.

French Housing Minister Cécile Duflot became the butt of more than a few jokes this week when she revealed she is the proud owner of a 1999 Renault Twingo.

French writer David Foenkinos was one of many to take to Twitter to express their amusement (and bemusement) about Duflot’s ‘revelation.’

“A minister hides millions in Switzerland, and as a result we find out that Duflot owns a Twingo. Somebody explain to me the link,” he said.

Eva Joly, fomer presidential candidate for the Green party, also opened herself up to scorn when she reaffirmed the assets she publicized before last year’s election.

“My declaration of assets was completely transparent. I revealed everything, even including my kayaks. They’re expensive because they’re made of carbon,” she told BFMTV.

Arnaud Montebourg, French Minister of Industrial Renewal, revealed himself to be a bit of a design connoisseur on Tuesday, when he told French daily Le Monde he was the proud owner of a €4,500 armchair from American designer Charles Eames.

French Junior Minister of Disabled People, Marie-Arlette Carlotti, has raised a few eyebrows in France with her property portfiolio. According to financial daily Les Echos, Carlotti has a 130-square-metre apartment in Marseille, a 120-square-metre apartment in Hérault, and a 70-square-metre apartment in Corsica.

Health Minister Marisol Touraine appears to be the wealthiest cabinet-member so far to reveal her assets, which amount to a total of €1.4 million, according to Les Echos.

Centre-right UMP deputy from Nice, and former professional motorcyclist, Christian Estrosi, seems to have a taste for the antique, having declared €6,000-worth of jewelry and books, along with three apartments with a total value over €900,000.

See Also: The ten most outrageous French political scandals

Process criticised as a "smoke screen"

However politicians, especially those among the opposition UMP ranks, have been heavily critical of the efforts to increase transparency.

“This won’t change anything,” said François Fillon, a senior opposition UMP deputy and former French prime minister, on Monday.

“If you’re dishonest, no regulation is going to set you straight,” Fillon told France 2 television.

UMP leader Jean-François Copé on Tuesday condemned what he called the "voyeurism and hypocrisy" of the project. "Hollande wants to put out a smoke-screen, to make everyone forget [about the Cahuzac affair]" he was quoted as saying in Le Point.

Transparency will only cloud the issue

The press have also joined in to ridicule the process.

Political journalist Caroline Roux this week predicted that the declarations would be worse than pointless, causing more public scepticism towards politicians, rather than less.

“The rich will have fingers pointed at them, and the less well-off will be suspected of hiding something,” she was quoted as saying by Europe 1 radio.

Hervé Gettegno, columnist at weekly magazine Le Point,  agreed, saying suspicions will only be raised because “we will be evaluating the total amount of the assets, but not their origins.”

Hollande's government has been under mounting pressure since Socialist former Budget Minister Jérome Cahuzac was charged with laundering the proceeds of tax evasion on April 4th, after admitting he had owned a foreign bank account.

Despite distancing themselves from Cahuzac, and despite his expulsion from the Socialist party, Hollande's government has been accused by figures on the right of having known about Cahuzac's illegal activities for months.

On Sunday, Swiss television TSR alleged the former minister had traveled to Geneva in 2009, in an unsuccessful attempt to transfer €15 million into one of his bank accounts. 

This week's new effort on transparency has underlined the fact that France is trailing behind its European neighbours in this department.

"In the European Union, there are only two countries where asset declarations for elected officials are not public: Slovenia and France. This speaks volumes about the backwardness of our political customs," Daniel Lebegue, head of the French branch of anti-corruption group Transparency International, told AFP.

There could, however, be a broader cultural explanation for this failure to examine the accounts of elected representatives. French sociologist Janine Mossuz-Lavau told AFP that the French people "found it much more difficult to talk about money than about sex."

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TAXES

Explained: France’s exit tax

Planning on leaving France? You may, depending on your circumstances, be charged the 'exit tax'.

Explained: France's exit tax

Like some other European countries, France does have an exit tax for those (French or foreign) who are leaving the country. It’s known by the English name l’Exit tax.

However, it won’t affect most people.

Only those who have been tax resident for a minimum six years of the 10 years immediately before they permanently move out of the country are liable to pay an exit tax – if, that is, they own property, titles or rights worth a minimum of €800,000, or that represent 50 percent of a company’s social profits.

If that affects you, the best advice is to seek expert individual financial advice before moving out of France for good. The relevant page on the French government’s impot.gouv.fr website says it is possible to defer payments, and some relief is available.

Because of the relatively high figures involved, this tax is irrelevant for most people. That said, however, you will still have to inform tax authorities that you are moving out of the country because you may still have income, property and capital gains taxes to pay.

Income tax

You must inform the tax office that you are moving and give them your new address so that your tax declarations can be transferred to your new address.

You are liable for tax on everything you earned in France prior to your departure as well as on any French earnings that are taxable in France under international tax treaties that you earned after your departure.

The year of your departure, you declare your previous year’s earnings as normal – declarations in spring 2024 are for earnings in 2023.

A year later, you will have to declare any earnings taxable in France from January 1st up to the date of your departure, and any French-sourced income taxable source until December 31st of the year of your departure.

If you continue to have any French-sourced income – such as from renting out a French property – you will have to declare that income annually, using the non-residents declaration form.

Property taxes

You will have property taxes to pay if you own a French property on January 1st of any given year – whether it is occupied or not. 

Property tax bills come out in the autumn, but they refer to the situation on January 1st of that year, so even if you sell your property you will usually have the pay a final property tax bill the following year.

Moreover, if you receive income from property in France or have rights related to that property (such as shared ownership or stock in property companies), as well as any additional revenue connected to the property, during the year you leave France, you will be required to pay taxes on these earnings.

If any property assets in France exceed €1.3 million on January 1st of a given year, you may also have to pay the wealth tax (IFI).

READ ALSO What is France’s wealth tax and who pays it?

Manual widget for ML (class=”ml-manual-widget-container”)

Capital gains tax 

If you sell your French property or share of a French property, you may be liable for capital gains tax at a rate of 19 percent. It will also be subject to social security contributions at the overall rate of 17.2 percent.

Capital gains tax varies depending on how long you have owned the property and whether it was a second home or your main residence.

READ ALSO How much capital gains tax will I have to pay if I sell my French property?

The good news is, if you move to another EU country, or any country that has a specific tax agreement with France, you may be exempt from capital gains tax for non-resident sellers on the sale of a property that was your principal residence in France.

If you move elsewhere, you may be able to claim exemption on capital gains tax up to €150,000. As always, you should seek expert financial advice.

Tell Social Security

Inform social security that you are leaving France permanently – and return your carte vitale if you have one. If you do not, you may be liable for any benefits you receive to which you are no longer entitled.

More mundane tasks involve informing utility and water companies, your internet provider, if you have one, the phone company, your insurance companies, banks – and La Poste, who will be able to forward your mail for up to 12 months, for a fee…

SHOW COMMENTS