Capital Markets

Money Fleeing Country, Says Banque de France

Not a good sign for the country

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Fresh data from the Banque de France show a sudden rise in outflows in October and November, registered in the so-called Target2 payments system of the European Central Bank.

Simon Ward from Henderson Global Investors said the net loss of funds was €53bn (£43.8bn) over the two months, roughly the period when Mr Holland unveiled a string of tax rises and suffered a collapse in relations with French business.

A key gauge of the French money supply—six-month real M1—has been contracting at an accelerating rate ever since Mr Holland's election in May.