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France’s 2026 Budget Hangs on Wealth‑Tax Deal as Socialists Threaten Censure

Talks continue after the Assembly delayed the Zucman tax debate to later this week.

Overview

  • Negotiations on a wealth‑tax measure are ongoing after the government postponed its debate, with PS leader Olivier Faure warning of a censure motion and possible dissolution if no acceptable proposal emerges.
  • Early votes shifted the budget math as deputies approved full tax relief on overtime work, estimated to cost about €1 billion, and rejected freezing the income‑tax scale, removing roughly €2 billion in planned receipts.
  • Lawmakers also reversed the tax treatment of child support and narrowly adopted a refundable tax credit for modest‑income nursing‑home residents that the government estimates at about €600 million.
  • Deputies backed an increase in the surtax on the largest companies and extended the tax‑free treatment of tips through 2028, according to Europe 1.
  • With roughly 3,700–4,000 amendments still to examine before a November 4 vote on the revenue bill, the public accounts minister and the Bank of France cautioned that cumulative changes threaten deficit‑reduction goals.