French PM and Socialists Clash Over Wealth Tax in Crucial 2026 Budget Negotiations

September 15, 2025
French PM and Socialists Clash Over Wealth Tax in Crucial 2026 Budget Negotiations
  • CFDT Secretary General Marylise Léon criticized Lecornu for lack of clarity on government policies and reaffirmed opposition to proposals like the holiday removal and unemployment insurance reforms.

  • Olivier Faure, First Secretary of the PS, emphasized the importance of the negotiations, highlighting that the socialist support is crucial to prevent Lecornu's government from facing a censure vote.

  • The core issue in the negotiations is the 2026 budget, with the PS advocating for less austerity and higher taxes on the ultra-rich, particularly through a wealth tax targeting patrimonies over 100 million euros.

  • Faure clarified that the wealth tax concerns assets mainly held in stocks and shares, criticizing the previous government's policies that benefited the ultra-rich and allowed asset sheltering.

  • The meeting lasted about an hour and a half, marking the start of ongoing discussions between Lecornu and social actors.

  • Meanwhile, protests are planned, with unions mobilizing against government policies, including a major strike scheduled for September 18 and a protest day on September 26 by agricultural unions.

  • This political process occurs amid broader consultations with other groups, including ecologists and communists, reflecting a comprehensive effort to stabilize Lecornu's government.

  • French Prime Minister Sébastien Lecornu is set to meet with the Socialist Party (PS) on Wednesday morning to negotiate the 2026 budget, a critical step to prevent government censure.

  • This meeting is part of Lecornu's broader initial consultations with political parties, unions, and employer organizations aimed at shaping his government's priorities.

  • The negotiations focus on the 2026 budget, with socialists demanding less austerity and advocating for increased taxes on the ultra-rich, including a proposed wealth tax by economist Gabriel Zucman.

  • Lecornu has expressed willingness to work beyond ideological constraints on fiscal justice, opposing the wealth tax on professional assets, arguing it could hinder job creation.

  • He has also announced plans to initiate decentralization reforms, eliminate benefits for former ministers, and remove two unpopular public holidays.

Summary based on 4 sources


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