France’s Socialists warn of repercussions of inaction on tax justice

(MENAFN) France’s Socialist Party leader Olivier Faure has warned that the government’s continued resistance to adopting measures for “tax justice,” including the reinstatement of a wealth tax, could provoke a political crisis and potentially lead to a no-confidence motion, according to reports.

“By the end of next week, we’ll know whether we’re heading toward dissolution or not,” said Faure during an interview with a French broadcaster over the weekend.

He urged the government to make tangible concessions on tax fairness as parliamentary debates begin on the revenue section of the 2026 budget. Faure emphasized that the outright rejection of a wealth tax or any comparable proposal would represent a “casus belli.” He also suggested that if the government were dissolved, legislative elections could take place as early as November.

Echoing Faure’s remarks, Socialist parliamentary leader Boris Vallaud stressed the importance of ensuring greater tax fairness during an interview on Monday. "Go explain to the French that because we didn’t want to—or weren’t able to—ensure more tax justice, medical deductibles will increase, housing benefits will be frozen, the minimum income support will be frozen, and disability benefits will be frozen," Vallaud said.

The Socialists have been ramping up pressure on Prime Minister Sebastien Lecornu’s government to back the so-called Zucman tax — a 2% minimum levy on fortunes exceeding €100 million ($116.5 million). However, after the Finance Committee rejected the measure last week, the party introduced a revised version proposing a 3% tax on assets over €10 million, excluding innovative and family-owned companies.

Economist Gabriel Zucman, whose research inspired the original proposal, criticized the modified plan, arguing that exempting startups and family businesses undermines the tax’s intent. He maintained that all professional assets should be subject to the levy.

As discussions over the 2026 budget continue in the National Assembly, lawmakers are also reviewing the Social Security budget in committee. Meanwhile, the right-wing Republicans party announced a separate win in the chamber. Its leader, Laurent Wauquiez, revealed that legislators had passed an amendment granting full tax exemption on tips for hospitality and restaurant workers. "Third victory: thanks to our amendment, the total tax exemption of tips for employees in the hotel and restaurant sector has been adopted, despite opposition from the left," Wauquiez wrote on social media.

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