French PM and Socialists Clash Over Wealth Tax in Crucial 2026 Budget Negotiations
September 15, 2025
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