France hikes taxes to narrow deficit, Italy falls behind

It's now official. The top tax rate in France is now 75% for those who make over a million euros. Moreover, there is a new band of 45% for those who make over 150,000 euros. Don't forget existing the existing VAT on all purchases.

The single currency bloc has already been destabilised by Cyprus and now faces fresh uncertainty if Lisbon cannot find new savings to meet the conditions of its €78bn (£66bn) bail-out.

Many investors understandably have not focused on France. The threat of scandal in Spain, the need for yet another round of government support for Italy's third largest bank and the country's upcoming election have commanded attention. What seems to have been a free ride for France may be coming to an end.

The Netherlands government has officially collapsed in a dispute over austerity measures. Elections likely in September. Meanwhile, the Czech government is also on the verge of collapse, for the same reason: austerity measures. The Financial Times reports Dutch government falls over budget talks

According to Socialist newspapers and politicians “to pay a tax is an act of solidarity, a patriotic act.” Those leaving France because of its uncompetitive tax rate see things differently. Please consider Socialists Denounce Gérard Depardieu for Leaving France