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France’s government faces a political crisis over a proposed wealth tax to pass its 2026 budget, with deep divisions over thresholds and exemptions.
France faces political instability as lawmakers prepare to vote on a contentious wealth tax, with Prime Minister Sébastien Lecornu under pressure to include a levy on the ultra-wealthy to pass a 2026 austerity budget.
The left-wing Socialist party, holding key influence, demands a tax inspired by economist Gabriel Zucman, targeting assets over €100 million with a 2% minimum rate, while the government and far-right oppose taxing professional assets, favoring a lower threshold of €5 million.
A compromise proposal suggests a 3% tax on assets over €10 million, excluding family and innovative businesses.
Zucman warns that loopholes would undermine the tax’s effectiveness.
The crisis stems from last year’s snap elections, which fractured parliament and weakened President Macron’s majority, leaving the government struggling to govern amid economic challenges.
El gobierno de Francia se enfrenta a una crisis política por un impuesto sobre la riqueza propuesto para aprobar su presupuesto de 2026, con profundas divisiones sobre los umbrales y las exenciones.