TWO of France’s most powerful tycoons have squared up to sling insults in a public spat over who should pay what taxes under the country’s Socialist government.

In the left corner, Baron Edouard de Rothschild, scion of the Gallic arm of the banking family and main shareholder in the left-leaning daily newspaper Liberation. In the right, Bernard Arnault, billionaire head of the luxury goods group LVMH — Louis Vuitton Moet Hennessy — the richest man in France, and the world’s fourth richest, according to Forbes magazine.

It was Arnault who, arguably, threw the first punch when he announced that he was seeking to become a Belgian. This raised speculation that President Francois Hollande’s call that he is determined to enforce a new “super-tax” — a 75 per cent band rate for those earning more than 1m euros, no exceptions — might have had something to do with the decision.

Liberation replied with a front-page picture of a smiling Arnault under the headline “Get lost, rich jerk”.

The tycoon, the paper said, was applying for Belgian nationality so he could move to Monaco. A tax agreement between Paris and Monte Carlo means French people living in the Riviera principality are subject to French taxes. Belgians are not.

Arnault, whose personal fortune is estimated at around $26bn, denied he was trying to wriggle out of Hollande’s calls for “solidarity”, and said he wanted to go north for “personal reasons”. He announced he was suing the paper for “public insults and injury”, describing the headline as “violent and vulgar”.

Enter Baron Rothschild, who went on French television on Tuesday to mount a strong defence of the newspaper. “I’m not shocked. It’s in keeping with Liberation’s provocative style and I think it’s a wonderful marketing operation,” he said.

Rothschild said it was the correct line for Liberation to take. “It seems to me that when those who are among the most well-off are asked to make an effort for two years, an effort of national solidarity, one adapts to this.” On Tuesday Liberation announced: “Bernard, if you come back, we’ll cancel everything.”

The headline harked back to a text message Sarkozy was alleged to have sent to estranged second wife Cecilia after meeting third wife Carla Bruni, reading: “If you come back, I’ll cancel everything.”

Liberation carried a front-page advertisement for a new perfume by Yves Saint Laurent, a rival of LVMH, and changed the background to its title from red to purple: matching the colour of the YSL logo that took up a third of the cover.

Liberation denied the YSL adverts were a dig at Arnault, saying the spot had been booked a long time ago.

Arnault, who has opposed Hollande’s economic programme, has also denied trying to reduce his tax bill. “I will remain fiscally domiciled in France, and as such, will fulfil all my fiscal obligations, like all French people,” he told AFP.

Meanwhile, Rothschild denied there was anything fishy about his acquiring Israeli nationality, insisting he needed double nationality to take part in equestrian sport “at the highest level”. — The Guardian, London