PARIS, Dec. 10 (UPI) -- France is stuck with its unpopular "bistro tax," imposing a 20 percent sales tax on restaurant meals but only 5.5 percent on fast-food outlets.
French Prime Minister Jean-Pierre Raffarin has vowed to end "this tax on our bistros" but the European Commission in Brussels refused under German pressure to let him charge the same flat rate of 5.5 percent on all kinds of restaurants. Germany, facing a budget squeeze, fears its restaurants will demand the same deal, leading to a loss of revenues.
The French daily Le Figaro Economie reported Wednesday Raffarin is starting to get "irritated" with Brussels, and has called for a special European finance ministers' meeting to deal with the French tax issue before the end of the year. Raffarin says his tax cuts would create 40,000 new jobs and "recognize the glorious role of French restaurants in our national heritage."
