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Thursday, April 4, 2013

France's President Hollande fights tax scandal

A financial scandal is threatening French President Francois Hollande, after it emerged that his former Socialist Party treasurer invested in two Cayman Islands offshore companies.

Jean-Jacques Augier, who managed Mr Hollande's campaign funds, told the daily Le Monde that there was "nothing illegal" in his tax haven affairs.

Meanwhile, ex-budget minister Jerome Cahuzac has been charged with fraud.

Ministers are under pressure to reveal what they knew about his tax evasion.

On Wednesday President Hollande addressed the scandal on national television, saying that in future all ministers and MPs would have to declare fully their personal finances.

But the media is already questioning whether that is enough, the BBC's Christian Fraser reports from Paris.

The pressure is growing for a full government reshuffle - just 10 months after Mr Hollande took office.

Mr Cahuzac admitted this week that he had hidden about 600,000 euros (£509,000; $770,000) in a Swiss bank account.

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