Housing starts in France will fall to 280,000-300,000 in 2013, the lowest level in 50 years warns developer Nexity. The government wants 500,000 units per year.
French president Francois Hollande thinks he knows the proper amount of houses that need to be built. Therefore, Hollande confirmed measures to support building quickly.
Here is a Mish-modified translation from Les Echos…
Emergency. This is the word that comes to everyone’s lips about building. Housing is at its lowest level since fifty years. François Hollande confirmed in an interview yesterday that “support for building” will be amplified quickly for the “public good”.
The Ministry of Housing was happy about yesterday’s statements from the Head of State: “This means we are moving towards an ambitious plan”. We recall the campaign promise to build 500,000 homes per year, of which 150,000 will be in social housing to offset the increase in the VAT rate.
France is in the midst of a deflating property bubble. Nonetheless, Hollande wants to build more houses anyway. His rationale is interesting. Hollande wants to offset the increase in the VAT, taxes that he hiked.
Hollande is on a mission to wreck France, and he is succeeding spectacularly as the following history shows.
June 8, 2012: Please consider economically insane proposal by French president Francois Hollande “Make Layoffs So Expensive For Companies That It’s Not Worth It”
August 13, 2012: In France, Government spending amounts to 55% of total domestic output. For discussion, please see Hollande’s Honeymoon is Over; 54% of Voters Unhappy; Unions Promise “War” in September.
November 29, 2012: Given that any clear-thinking person should quickly realize that if companies cannot fire workers they will be extremely reluctant to hire them in the first place, it should be no surprise to discover French Unemployment Highest in 14 Years (And It’s Going to Get Much Worse).
December 28, 2012: Economic implosion in France is underway. French Retail Sales Contract 9th Consecutive Month as Cost Inflation Surges
For the public good, Hollande ought to resign along with his entire socialist government.
Mike “Mish” Shedlock
“Wine Country” Economic Conference Hosted By Mish
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