French socialist leader threatens no-confidence vote over wealth tax

By Al Mayadeen English
Source: News Websites
24 Oct 2025 18:32

French Socialist Party leader Olivier Fauré threatens a no-confidence vote if the government refuses to impose a wealth tax in France’s 2026 budget plan.

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French socialist party general secretary Olivier Faure listens to debates before a no-confidence vote, Thursday, Oct. 16, 2025 at the National Assembly in Paris. (AP)

The leader of the French Socialist Party, Olivier Fauré, threatened to topple Sebastien Lecornu's government by Monday should he reject imposing taxes on France's wealthiest, amid ongoing talks to establish the government's budget for 2026.

“If there is no change by Monday, the Socialists will vote against” the government's budget plans and call for a vote of no confidence, Fauré, whose party has a decisive majority in the suspended parliament, told BFMTV television.

Lecornu’s government has resisted reinstating a full wealth tax but aims to raise €2.5 billion next year through higher levies on holding companies and top earners.

Capital flights soar

Meanwhile, French entrepreneurs and affluent families are moving record sums out of the country, channeling investments into Luxembourg-based annuities and Swiss financial accounts amid mounting political and fiscal instability at home, The Financial Times reported.

Wealth managers say the outflow began after President Emmanuel Macron’s decision to call snap parliamentary elections last June, which fractured the National Assembly and ushered in a string of short-lived governments. The uncertainty has continued in 2025 with Lecornu, who has turned to new taxes on high earners to fill a deep budget deficit.

Guillaume Lucchini, founder of the Paris wealth management firm Scala Patrimoine, said most assets he handles now flow into Luxembourg life insurance contracts, which are long-term investment products offering tax benefits. “It’s really accelerating,” he said. Others, including Swiss-based lawyer Philippe Kenel, note that capital flight to Switzerland is also rising as wealthy families seek stability rather than purely tax relief.

Analysts say the trend of moving money to Luxembourg and Switzerland may precede a broader wave of French tax exiles if political instability deepens.