French President Francois Hollande has called for "eradication" of the world's tax havens and told French banks they must declare all of their subsidiaries.

He was speaking after presenting a draft law aimed at "moralising" French public life - a response to the tax scandal that has shaken his presidency.

France's ex-Budget Minister Jerome Cahuzac has been charged with fraud over a secret Swiss bank account.

Mr Hollande said a new central agency would fight fraud and corruption.

Earlier the French Socialist government set a deadline of 15 April for ministers to declare their assets, as part of the new transparency drive.

Mr Cahuzac admitted last week that he had hidden about 600,000 euros (£509,000; $770,000) in a Swiss bank account, causing shock in France. He has now been expelled from the Socialist Party for lying about his financial affairs.

Addressing a news conference on Wednesday, Mr Hollande said "tax havens must be eradicated in Europe and worldwide".

"I won't hesitate to consider as a tax haven any country that refuses to co-operate fully with France."

He said French banks "will have to publish every year the full list of their subsidiaries in the world, country by country". They will also have to explain their business, he said.

"In other words it won't be possible for a bank to hide transactions carried out in a tax haven."

Mr Hollande said a new national, specialist prosecutor would act on cases of fraud and corruption.

In addition, "a high-level authority will be created to monitor the assets and interests of ministers, members of parliament, top elected officials", he said.

A list of banned professions for politicians will be drawn up, to prevent conflicts of interest.

Spate of scandals

Referring to the disgraced minister Jerome Cahuzac, he said "the judiciary is on the case - it will have to give its judgement".

He said Mr Cahuzac should not return to the lower house - the National Assembly.

"This is, I think, a question of conscience. How can someone return to the parliament where a lie was told?" Mr Hollande said.

The BBC's Christian Fraser in Paris says polls suggest respect for ministers and MPs is at an all time low in France.

There are now calls for a government reshuffle and in some quarters a new Sixth Republic.

The Cahuzac affair comes on top of other scandals: the conviction of former president Jacques Chirac, the New York court case that wrecked the career of former IMF chief Dominique Strauss-Kahn and the Bettencourt investigation, in which former president Nicolas Sarkozy is suspected of party funding violations.

French Finance Minister Pierre Moscovici wrote to the European Commission at the weekend calling for a greater exchange of banking information across Europe, to fight tax evasion.

http://www.bbc.co.uk/news/world-europe-22094194

A lot of companies have been brought into this discussion, such as Amazon and Starbucks. There are argument for both sides. Where do you stand? What are your thoughts on tax havens? (especially during this economic climate)

I'm not sure how anybody can be pro tax haven. Well i guess you could argue it's one of the few ways small unimportant countries with little to no resources can get their economies going... however the issue with that is... well look at Cyprus. Banking capital ends up dwarfing GDP and the local "real" economy meaning if the banks fuck up...EVERYBODY is fucked. Especially if those banks are government run.

That said... as a policy issue this probably would only serve to harm France as their ridiculous taxes will just force companies will cause even more flight from people who previously hide a portion of their taxes.

I would think you'd need something major like all of the G-20 to make this start to happen. Otherwise if one country does this like France they'll just end up hurting themselves as businesses that do not absolutely have to be there will move elsewhere.

One of the best ideas ever, someone should get this into the UN quickly and just vote on it. Money made in the country should go to further investment in that country, it shouldn't be allowed just to go to a foreign bank account to avoid taxes. It's why so many developed countries are fucked now, this money adds up quickly. There shouldn't be a tax rate of 75% though, that's hinders development more than anything.

Even if the G20 did this... they'd still do that.  You'd just see a vast increase in the companies "based in dubai" and places like it... with branch offices elsewhere.

What REALLY should be done is the replacement of a corporate tax with that of a corproate VAT.   So instead of getting taxed for being in the country and providing jobs, you get taxed for everything you sell in the country for the priveledge of using the market..

So instead of saying "Thank you manufacturing company for not getting cheaper labor in mexico, now pay a bunch of heavier taxes on top of that."

They can say "Screw you chinese manufactuerer.... we're taking a cut of everything you sell here."

Don't all non-domestic manufacturers pay tariffs?

As for corporate VAT the whole idea is too make your country attractive to investors. If you make it difficult for them they will go somewhere else.

On one hand all the talk is about getting foreign investment in your country and on the other you want a bigger share of their pie.

The powers that be created this "global open market" in the first place. If others prosper while they suffer then they must blame themselves... but that's another subject.

As for eradicating tax havens what a load of cobblers. The rich have no loyalty to anything but their wealth. That's why so many abandon their native country and leave for or utilise countries like Switzerland when their governments come down to hard on them, or rather when they think that their governments come down too hard on them.

Every place that doesn't have a 75% tax rate looks like a tax haven next to France.

Our Presidents sure like bold statements with no action behind. I remember Sarkozy saying the same thing in 2009, but tax evasion's still there.

Hollande is freakin' dumb. He only reacts on tabloids as if they were what the people want. He is not able to take good decisions by himself and once he will have to take a big decision without being able to listen to the people and/or taking other countries as exemple, it will be finish.

Trust me, I live right up there. (Belgian)

You belgians are disqualified from talking politics.. you guys took like 1,5 years to form a goverment.. :P