French PM Lecornu faces new headache after MPs reject tax on ultra rich

French PM Lecornu Faces Political Challenges After Wealth Tax Rejection

France's Prime Minister Sébastian Lecornu is facing increased political tension following the rejection of a proposed wealth tax by Members of Parliament. The refusal threatens the stability of his government if no levy on the ultra-rich is included in the national budget.

Government Pressure to Control Deficit and Debt

Lecornu's administration must approve a spending bill by year-end aimed at reducing France's growing deficit and debt. However, the process is stalled due to a deadlock in the National Assembly.

Proposed "Zucman Tax" and Opposition

A left-wing coalition consisting of the Socialist, Communist, Green parties, and France Unbowed had proposed a minimum 2% tax on fortunes exceeding €100 million. This measure, named the "Zucman tax" after economist Gabriel Zucman who designed it, was decisively defeated by 228 votes to 172 on Friday night.

Reactions from the Opposition

"If you think that at some point, we will agree to vote for a budget that is completely regressive, then you are mistaken," said Socialist leader Olivier Faure, emphasizing that voting on the current budget is impossible. He urged Lecornu and MPs to negotiate a compromise to avoid censure or new elections.

Potential Consequences

The defeat of the wealth tax proposal could lead to political instability, with the government possibly facing a vote of no confidence or the need for early legislative elections if consensus is not reached.

Author's Summary

Prime Minister Lecornu faces political instability after MPs reject a proposed tax on ultra-rich wealth, complicating efforts to pass a critical budget aimed at curbing France's debt.

RFI — 2025-11-02