French PM Upholds 75 Percent Tax for Soccer Clubs

French soccer clubs are set to strike after President Francois Hollande held his ground in the face of growing anger from team owners, declaring they would have to pay the 75 percent tax.

The socialist president stood strong in a meeting with the head of the French Football Federation and representatives of the country’s top clubs, saying that the levy on salaries over 1 million euros ($1.4 million) will apply to clubs.

“The need to redress the public finances fully justifies the effort asked of companies who choose to pay annual salaries to such a level,” a statement from the Elysée Palace said.

Jean-Pierre Louvel, president of UCPF, the union of professional football clubs, confirmed the strike would go ahead at the end of November, which would be the first footballer strike since 1972.

But this is likely to be seen as a victory for Hollande who has been forced into a series of tax U-turns this month. On Monday the government suspended the introduction of a new “ecotax” on large vehicles.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza