Friday 15 December 2017

Karl Lagerfeld blasts French leader Francois Hollande as an idiot in tax row

Alexandria Sage

Fashion designer Karl Lagerfeld has accused President Francois Hollande of destroying France's economy by imposing painful taxes on the rich, calling the Socialist leader an "idiot".

The creative director of French fashion house Chanel, whose clients are largely the wealthy who stand to be most affected by Hollande's tax hikes, likened the president to Spanish Socialist former prime minister Jose Luis Rodriguez Zapatero.

"This idiot will be as disastrous as Zapatero was," Lagerfeld said in an interview with the Spanish edition of glossy fashion magazine Marie Claire.

He added a famously blunt celebrity voice to criticism from business leaders at tax rises Hollande is slapping on companies and the wealthy in trying to reduce France's big public deficit.

Officials at the Elysee presidential palace were not immediately available for comment.

Hollande has aimed to avoid increasing the already weighty tax burden on low- to middle-income households in his 2013 budget but is struggling regardless with approval ratings that have slid to as low as 41pc from above 60pc when he was elected in May, replacing conservative Nicolas Sarkozy.

Lagerfeld, known for eccentric comments and unconventional looks, and a darling of rich fashionistas who snatch up Chanel's pricey creations, said the rich were being singled out by Hollande, who has set a 75pc income tax on with an annual income of at least €1m.

"It's a disaster. He wants to punish (the rich) and of course they leave and no one invests," he said. "Foreigners don't want to invest in France and that's just not going to work."

Business lobbies say that, rather than raising taxes, the government should be easing the heavy labour charges limiting the competitiveness of French companies and contributing to a surge in unemployment above 10pc.

The government says it intends to look at ways of boosting competitiveness but has ruled out the sweeping cuts to labour charges that business leaders are seeking.

Lagerfel, a white-haired German designer rarely seen without dark glasses, high collar and gloves, sniffed that most French products were ignored by the buying public.

"Outside of fashion, jewellery, perfume and wine, France isn't competitive," Lagerfeld said. "The rest of our products don't sell. Who buys French cars? I don't."

In February, Lagerfeld weighed in on the election race between Hollande and Sarkozy, saying he was bored by it and no longer believed in politics. "I think countries should be run like big companies," he said.

Hollande is under pressure to show France has the fiscal rigour required to help the euro zone escape from a three-year sovereign debt crisis, while trying to keep election promises to tackle unemployment, which is likely to rise further with a spate of industrial sector lay-offs.


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