France’s Socialists warn government inaction on ‘tax justice’ could result in no-confidence motion

“By the end of next week, we’ll know whether we’re heading toward dissolution or not,” said Olivier Faure, speaking to French broadcaster LCI over the weekend.

He stressed that he expects concessions from the government on tax justice in the coming days as the National Assembly begins debating the revenue section of the 2026 budget.

Faure underscored that the rejection of a wealth tax or a modified version of it would constitute a “casus belli.”

He also argued that if they are headed towards a dissolution, legislative elections could take place in November.

The Socialists’ parliamentary leader Boris Vallaud also called for more tax justice in the 2026 during an interview with broadcaster RTL on Monday.

"Go explain to the French that because we didn’t want to—or weren’t able to—ensure more tax justice, medical deductibles will increase, housing benefits will be frozen, the minimum income support will be frozen, and disability benefits will be frozen," Vallaud said.

The Socialists have recently been intensifying pressure on Prime Minister Sebastien Lecornu’s government to ensure the adoption of the Zucman tax, a proposal to impose a 2% minimum levy on fortunes above €100 million ($116.5 million).

However, they are aware that its chances of adoption are slim after its rejection by the Finance Committee last week and thus introduced a lighter Zucman tax.

The alternative suggests levying a 3% tax on assets of more than €10 million while excluding innovative companies and family companies.

Economist Gabriel Zucman, whose name inspired the tax, also judged the tax proposed by the Socialists to be insufficient while speaking Monday on broadcaster BFM TV.

For him, exempting startups and family businesses would be irrelevant, as he believes that no professional assets should be allowed to evade the tax.

Debates are still continuing in the National Assembly, while the Social Security budget is being taken up in committee.

As the talks continue, Laurent Wauquiez, leader of the right-wing Republicans party, announced that the Assembly adopted an amendment on the tax exemption of tips.

"Third victory: thanks to our amendment, the total tax exemption of tips for employees in the hotel and restaurant sector has been adopted, despite opposition from the left," Wauquiez wrote on the US social media company X’s platform.