French government walks on tightrope as MPs set to debate Zucman tax • FRANCE 24 English

Key Concepts:

• 2026 Budget Proposals
• Zukman Tax (Wealth Tax)
• Social Security Finance Bill
• National Assembly
• Government Fragility
• Political Tightrope
• Amendments
• Dissolution of the National Assembly

French Government Budget Debate and the Zukman Tax

Lawmakers in France are currently engaged in intense debates surrounding the government's 2026 budget proposals. The administration is facing significant pressure, with the Prime Minister reportedly ignoring calls for a wealth tax on the nation's ultra-wealthy. This situation is unfolding against a backdrop of a government described as being on "very shaky ground" and "walking on a political tightrope."

Budget Marathon and Legislative Process

The legislative process for the 2026 budget is a lengthy one, involving a detailed review of the text amendment by amendment. As of Tuesday, hundreds of amendments had been voted on, but over 3,000 still remain. The original deadline for the final vote on the budget was November 4th, but due to the slow pace of proceedings, this is now considered "very unlikely."

Concurrently, in a separate room, the social affairs committee is voting on the Social Security Finance Bill, with its final text expected by November 12th. The overall atmosphere within the National Assembly is described as "incredibly tense."

The Zukman Tax: A Major Political Flashpoint

A central point of contention is the "Zukman tax," a proposed wealth tax.

• Original Proposal: The initial version of the Zukman tax aimed to implement a 2% wealth tax on fortunes exceeding €100 million.
• Arguments:
  • Left-wing perspective: Advocates argue for fairness and the need to tax the ultra-wealthy.
  • Central and right-wing perspective: Opponents contend that such a tax would hinder investment.

The "Zukman Light" Proposal

In response to the deadlock, the Socialist Party has put forward a "Zukman light" tax. This is a softer version of the original proposal, with the following characteristics:

• Impact: It would affect fortunes exceeding €10 million.
• Exclusions: Family businesses and startups would be exempt.

Socialist Party's Ultimatum and Government Fragility

Despite being a softer version, the "Zukman light" proposal has also faced considerable backlash. However, for the Socialist Party, it represents a "red line." They have declared that if any form of the Zukman tax is not incorporated into the 2026 budget, they will vote against the government by the end of the week. Such a move could lead to the dissolution of the National Assembly, further highlighting the precariousness of the current government's position.

Conclusion

The French government is navigating a critical period as it attempts to pass its 2026 budget. The debate over the Zukman tax, particularly the Socialist Party's "Zukman light" proposal, has become a decisive factor. The outcome of these legislative battles will determine the survival of the current government and could potentially lead to a dissolution of the National Assembly. The situation is characterized by high tension and uncertainty, with each parliamentary session holding the potential to reveal whether the government will survive or fall.