French president offers ‘guarantee’ on taxes in bid to lure foreign investment

French president François Hollande appealed to foreign business leaders to invest in his country yesterday, offering them simpler and more stable tax policies as his unpopular government tries to spur growth and create jobs.

Hosting 30 heads of French units of foreign companies at the Elysee Palace, Mr Hollande pledged to guarantee taxes on an investment would not rise later — as has happened in the past — and Vat and duty rules for firms would be streamlined this year.

The Socialist president, who last month announced France would phase out €30bn in charges on companies by 2017 to reverse its slide in trade competitiveness, also said business taxes would be harmonised with those of its neighbours, especially Germany, by 2020.