France undergoes budget battle amid threats from left wing
The government faces a deadline of Dec. 23 to pass the bill, with opposition parties holding enough seats to block critical measures or even prompt a no-confidence vote, according to reports.
The Socialist Party (PS) has warned that it may submit a motion of censure if stronger redistributive measures are not included. At the center of their demands is the so-called “Zucman tax,” designed to levy a 2% minimum charge on fortunes exceeding €100 million ($116.25 million).
National Rally (RN) leader Marine Le Pen confirmed her party’s refusal to back the tax unless it mirrors their own wealth tax proposal. “We will only support it if it corresponds exactly to the wealth tax that we have proposed, excluding the main residence,” Le Pen said during a visit to the Vosges region. “If the text is written as the Socialist Party wants, we will not support it,” she added.
Economist Gabriel Zucman, whose name is associated with the tax, also expressed concern on radio, cautioning that multiple exemptions would “restart the optimization machine.” He drew a parallel with 1981, when France introduced a wealth tax, yet “billionaires managed to avoid paying.”
Despite the tensions, lawmakers approved several amendments, including maintaining a 20% minimum tax on high earners until the deficit falls below 3%, and broadening exemptions for overtime and maintenance payments. Tax relief for journalists was also adjusted, reducing the income threshold for eligibility.
The 2026 draft budget sets aside €4.7 billion ($5.46 billion) for local authorities, though smaller municipalities have warned that unclear allocations could stall essential projects.
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