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National Assembly Rejects Zucman Wealth Tax, Intensifying 2026 Budget Standoff

The setback leaves the government courting the PS by proposing to scrap 2026 freezes on pensions plus social minima.

Overview

  • Lawmakers voted 228–172 against the left’s plan for a 2% minimum levy on fortunes exceeding €100 million.
  • A Socialist Party compromise—3% from €10 million with exemptions for innovative and family firms—was also defeated.
  • Rassemblement National, the centrist bloc and Les Républicains formed the bulk of the opposition, while left parties backed the measures and kept censure threats alive.
  • Prime Minister Sébastien Lecornu attended the debate and offered to abandon 2026 freezes on pensions and social minima, a concession estimated at €3.6 billion.
  • Talks shift to alternative revenue paths and the budget timetable, with ministers warning of constitutional risks to taxing professional assets as group leaders schedule further negotiations before the next votes.