The French economy has likely dipped into recession already even before Paris embarks on fiscal tightening of 2% of GDP this year to meet EU deficit targets. Analysts say the "double whammy" of tax rises and monetary contraction could prove a toxic mix in 2013.
Yet the bitter stand-off between France's Socialist leader and French business is a greater concern. An alliance of private sector groups issued a "State of Emergency" alert in October.
The employers group MEDEF said business was "in revolt across the country", warning that bankruptcies were accelerating and firms were slashing investment.
"Large foreign investors are shunning France altogether," it said.
Mr Hollande has sought to rein in his industry minister Arnaud Montebourg, who first lashed out at the Peugeot family and then threatened to nationalise ArclerMittal's steel operations in Lorraine, describing Lakshmi Mittal as "unwelcome" in France.
The hike of the top rate of tax to 75% for income above 1 million euros, have led to flight of rich French to London and Belgium. The actor Gerard Depardieu has already received his Russian citizenship and passport from Russia's President Putin.