Philippe has promised a substantial tax break of up to 50 percent for financiers, the right to exclude foreign properties and assets from the calculation of wealth tax for eight years and scrapping the highest bracket of payroll tax on bankers. Furthermore, France will also reduce corporate tax to 25 percent and it offers a personal income attack at a lower rate than Germany and the Netherlands.
Such initiatives mark a clear difference from the previous executive, when former President Francois Hollande heavily taxed the wealthiest in French society.
Severin Cabannes, deputy CEO of Societe Generale, told CNBC on Tuesday that France usually has two weaknesses: Tax instability with changes in government and a very rigid labor market. However, President Emmanuel Macron and the cabinet led by Edouard Philippe are addressing both subjects.
He added that “it’s a bit early to say” if the measures will be enough to attract people from the City of London, “but Paris has obvious strengths on (the) continental Europe market, clearly,” he said.
“Paris is the first place for equity exchanges, first place for (the) asset management industry and Paris is the first (place) in intercontinental Europe for the banking industry,” he mentioned.