French wealth tax to be implemented

A proposed 75-percent tax on income exceeding one million euros, a centrepiece of Francois Hollande's presidential campaign earlier this year, will be "strictly" implemented, France's finance minister told AFP on Friday. "Any other interpretation is unfounded," Pierre Moscovici said in response to press reports that the measure was being watered down. The president "made a very clear and strong commitment on very high earnings being imposed at 75 percent," the minister said. "Technical modalities are in the process of being worked out. This commitment by the President of the Republic, will be strictly respected" in the 2013 budget which is set to be finalised later this month, he said. French dailies Les Echos and Le Figaro reported on Thursday that the French government was looking to water down the campaign promise by raising the 75-percent tax rate threshold to two million euros for couples and excluding capital gains.