Francois Hollande 'an imbecile who detests the rich': Karl Lagerfeld

ONE of Europe's top fashion designers has called Francois Hollande an 'imbecile' for driving artistic and business talent out of France.

Karl Lagerfeld

ONE of Europe's top fashion designers has branded President Francois Hollande an "imbecile" for driving artistic and business talent out of France with his "squeeze-the-rich" politics.

Karl Lagerfeld, artistic director of the fashion house Chanel, made his ill-tempered outburst as a protest by French businessmen against punitive government policies spread to the art world, in uproar over plans to tax works of art.

"Hollande detests the rich," Lagerfeld told the Spanish edition of Marie Claire magazine, "and wants to punish them, so they're leaving, and nobody is investing."

The Paris-based designer predicted "disaster" for France under Mr Hollande, adding: "Things can't go on like this. Besides fashion, jewels, perfume and wine, France is not competitive; and who buys French cars? Not me."

He and other designers fear Paris's reputation as the global headquarters of fashion and luxury is threatened by new tax measures that include a top rate of 75 per cent on income above €1 million ($1.3m) and higher capital gains and corporate tax rates. After wine and tourism, fashion and luxury are the mainstays of France's economy.

Bernard Arnault, Europe's richest man, who heads the LVMH fashion and luxury empire, recently announced he had applied for Belgian citizenship in what may be an initial move towards acquiring tax-free status in Monaco.

Francois-Henri Pinault, another French fashion magnate, has voiced his disquiet over the Socialist Mr Hollande's government amid rumours that his PPR luxury goods group, which owns Gucci and Yves Saint Laurent, is to move its executive committee to London. "I ask myself whether, in a period of severe crisis, political ideology is the best solution," he said, referring to the 75 per cent tax rate (Europe's highest) Mr Hollande had been accused of introducing to impress voters on the far Left.

Mr Pinault is said to have told Mr Hollande that he fears fashion designers will be among those forced to leave France. As well as the 75 per cent tax on the super-rich that was approved by parliament on Friday, a new 45 per cent rate is being introduced on annual earnings above €150,000.