Overview

• Bernard Arnault, CEO of LVMH, has labeled the French government's proposed corporate tax surtax as a 'tax on the made in France' and warned it could lead to business relocations abroad.
• The surtax, intended to raise €8 billion in 2025, targets companies with over €1 billion in revenue, with rates reaching up to 40% for the largest firms.
• Arnault highlighted the contrast between France's fiscal environment and the United States, where lower taxes and subsidies have created a more attractive investment climate.
• The French government has defended the measure as temporary and necessary for addressing public debt, but Arnault and other business leaders remain skeptical about its duration.
• Economic analysts and industry leaders warn that such policies could weaken the competitiveness of French companies and exacerbate existing economic challenges.