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Reuters French President Francois Hollande (C) speaks with Prime Minister Jean-Marc Ayrault (L) and Economy and Finance Minister Pierre Moscovici following a government meeting about employment and the economic situation in France at the Elysee Palace in Paris, January 4, 2013. REUTERS/Philippe Wojazer

By Nicholas Vinocur

PARIS (Reuters) - French handyman Bruno works full-time doing repair work on homes around Paris. But he says the real reward comes after all paperwork has been signed and customers ask for more work - off the books.

"The client and I are in the same position: we both need to save money, so cash works for everyone," said Bruno, 27, who asked not to be identified because of the tax-dodging that is helping to swell his monthly wages by 25 to 50 percent.

Working for cash in hand is commonplace in many countries, including some of France's euro zone neighbours.

Now the French are starting to catch up, undermining President Francois Hollande's efforts to boost official employment numbers and threatening the tax receipts he needs to bring the public deficit within European Union limits.

A cultural preference for using cheques over cash and France's highly-developed tax collection system, employing 115,000 staff, have kept its undeclared economy less developed than those of some of its neighbours.

But rises in value-added taxes and the scrapping of subsidies for services ranging from baby-sitting to gardening have spurred the first expansion in the 'shadow' part of France's economy for more than a decade.

Friedrich Schneider, shadow economy specialist at Austria's Linz University, said such activity in France last year amounted to a further 10.2 percent of output - compared with 21 percent in Italy and 19 percent in Spain.

Now Schneider, one of the world's most widely-cited experts on shadow economies, forecasts the French figure will rise to 11.4 percent in 2014. He gauges economies' "invisible" output using clues such as total cash demand.

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French succumb to temptation of cash as taxes climb

Tuesday, January 28 07:44:19

French handyman Bruno works full-time doing repair work on homes around Paris. But he says the real reward comes after all paperwork has been signed and customers ask for more work - off the books.

"The client and I are in the same position: we both need to save money, so cash works for everyone," said Bruno, 27, who asked not to be identified because of the tax-dodging that is helping to swell his monthly wages by 25 to 50 percent.

Working for cash in hand is commonplace in many countries, including some of France's euro zone neighbours.

Now the French are starting to catch up, undermining President Francois Hollande's efforts to boost official employment numbers and threatening the tax receipts he needs to bring the public deficit within European Union limits.

A cultural preference for using cheques over cash and France's highly-developed tax collection system, employing 115,000 staff, have kept its undeclared economy less developed than those of some of its neighbours.

But rises in value-added taxes and the scrapping of subsidies for services ranging from baby-sitting to gardening have spurred the first expansion in the 'shadow' part of France's economy for more than a decade.

Friedrich Schneider, shadow economy specialist at Austria's Linz University, said such activity in France last year amounted to a further 10.2 percent of output - compared with 21 percent in Italy and 19 percent in Spain.

Now Schneider, one of the world's most widely-cited experts on shadow economies, forecasts the French figure will rise to 11.4 percent in 2014. He gauges economies' "invisible" output using clues such as total cash demand.

In a French survey by the Markit Audit pollster in November, one in three people admitted to having worked off the books - against just 13 percent in 2008.

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French black economy thriving

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Published: Tuesday, Jan. 28, 2014, 3:15p.m. Updated 7 hours ago

The chairman of the Blawnox Planning Commission has an idea to improve riverfront property in the borough.

Richard Chene presented an idea to officials last week to beautify the riverfront area. His plans include a boat dock, gazebos, green space and 16 parking spaces.

He said residents who live on First Street and face the river would get a free parking space.

The area also would have a place for the Blawnox Volunteer Fire Department to put its boat into the water, which Chene said is needed.

Our fire department does not have a place to put a boat into the water, he said.

Chene said the need for a ramp led him to look into the project.

He said money would be available only for a larger project, not just the boat ramp.

The area would be similar to a boat launch in Sharpsburg.

Funding for the project would be secured using federal and other outside money and not local tax dollars, Chene said.

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Riverfront concept presented to officials

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The Energy and influence of the Direction of you home, understanding Feng Shui
Irene Hammond, Realtor http://www.ScottsdaleZen.com talks with Johndennis Govert http://www.JohndennisGovert.com about the direction of your home, front door, and energy o...

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2014 Feng Shui Home and Office Tips
Here #39;s how to apply the 2014 feng shui updates for home and office: http://fengshui.about.com/od/thebasics/qt/feng_shui_house.htm and here you can buy 2014 f...

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2014 Feng Shui Home and Office Tips - Video