French Retailers Angry At Hollande

French retailers today issued a caveat to the nation's socialist government that its planned 50-per-…

French retailers today issued a caveat to the nation's socialist government that its planned 50-per-cent elevation of the tax paid by retailers operating commercial surfaces of over 2,500 square metres could lead to enormous job cuts in the sector.

The French Retail Federation (FCD) said in a formal statement that retailers were freezing the implementation of contracts to recruit 30,000 people over three years while waiting for President François Hollande to axe the hike.

"In attacking the retail sector, the government is destroying new jobs, notably those of unskilled young people at a time when unemployment is exploding," the statement said.

According to French brokerage CM-CIC Securities, the Tascom tax, which is currently €34.12 per square metre, brings in about €600 million, and targets mainly hypermarket operators.

Hollande's popularity is at an all-time low.