France to reinstate overtime tax

The president of France, Francois Hollande, has a plan to reintroduce tax on overtime in order to reduce the public deficit.

The president's plan is also aimed at strengthening the 35-hour work week. Under the plan small firms will be able to keep the tax break. Throughout Hollande's presidential campaign getting rid of the overtime working law was one of his major pledges, according to Guardian. However small firms that have less than 20 employees will be able to keep the tax break on overtime hours, as this is part of Hollande's promise to help small companies out. According to Financial Times, the prime minister, Jean-Marc Ayrault, spoke to the assembly on Tuesday and asked them if they believed that an employer would have the incentive to hire people if an overtime hour cost less than a regular hour? Ayrault went onto say that it was time to put an end to the measure. According to City AM, the former prime minister, Francois Fillion, spoke out against the reversal of the measure. Fillion said that the decision will make the economy even more rigid. Regardless of Fillion's opinions, the government will probably go through with their plans.