On May 6, 2012, after having elected conservative-leaning presidents for 17 years, France turned to Socialist Party candidate François Hollande. Nicolas Sarkozy, the former president, went on vacation in Marrakesh.
On the other side of the pond, however, phones are now ringing off the hook. One of Hollande’s brilliant initiatives to boost the French economy included the promise of a 75% income tax rate for revenues above 1 million euros. The result has been a net cash flow out of France.
Investors are pulling their capital from the French economy, and French euros are now being redirected to more promising areas of the world. French buyers are rushing to purchase luxury real estate properties from New York City to Miami. The Trump Soho Hotel Condominium has been mentioned as one of their favorite investments, as well as full-service luxury condos in Miami, which are suddenly hotter than tiny apartments in the French Riviera.
After the Sarkozy years, French investors are still looking for growth and stability. We can only hope they don’t pay attention to President Obama’s promises, which are far more similar to Hollande’s than Sarkozy’s.