France faces fiery budget battle as left threatens to topple government

By Necva Tastan Sevinc

ISTANBUL (AA) - As debate opened in the French National Assembly, Prime Minister Sebastien Lecornu on Saturday acknowledged the 2026 draft budget was “imperfect” but appealed for unity in the face of mounting dissent from the left and center-right.

The government has until Dec. 23 to push the bill through parliament, where opposition parties hold enough seats to block key measures or trigger a no-confidence vote, the French news broadcaster BFM TV reported.

The Socialist Party (PS) has warned it could file a motion of censure if the government fails to include stronger redistribution measures. Central to its demands is the so-called “Zucman tax,” a proposal to impose a 2% minimum levy on fortunes above €100 million ($116.25 million).

- Le Pen rejects ‘Zucman tax’ outright

National Rally (RN) leader Marine Le Pen reaffirmed that her party would not support the tax, even in a diluted form.

“We will only support it if it corresponds exactly to the wealth tax that we have proposed, excluding the main residence,” Le Pen said during a visit to the Vosges region.

“If the text is written as the Socialist Party wants, we will not support it,” she stressed.

Economist Gabriel Zucman, whose name inspired the tax, also voiced concerns on France Inter radio, warning that multiple exemptions would “restart the optimization machine.”

He compared the situation to 1981, when France’s wealth tax was introduced, but “billionaires managed to avoid paying.”

Despite the turbulence, MPs adopted several amendments, including the continuation of a 20% minimum tax on high earners until the deficit drops below 3%, and expanded tax exemptions for overtime and maintenance payments.

Journalists’ tax relief was also revised, lowering the income ceiling for eligibility.

The 2026 draft budget allocates €4.7 billion ($5.46 billion) to local authorities, but small municipalities warn that unclear funding could freeze key projects.

“We are not sure of our subsidies,” said a mayor in Pyrenees-Atlantiques, who has already paused infrastructure plans.