Paris (AFP) – France’s prime minister on Friday urged lawmakers to reach a compromise to pass an austerity budget, after leftists threatened to oust his government if it did not include a tax on the very wealthy. Sebastien Lecornu has promised to get a spending bill through a deeply divided parliament by the end of the year, after the legislature toppled his two predecessors over cost-cutting measures.
“The budget the government is putting forward is imperfect,” he said as he opened a debate on its contents in the National Assembly on Friday afternoon, after a parliamentary committee earlier this week rejected it 37 votes to 11. “The government is ready to take part in an open and transparent debate…including by amending our own text,” he added. But Lecornu said a single party could not dictate the parliament’s decisions, and urged instead “a culture of demanding debate between lawmakers who initially have different convictions.” He said debates should include “dialogue about tax justice.”
The prime minister earlier this month agreed to suspend an unpopular pensions reform so the Socialists, a swing group in parliament, could help him survive a confidence vote in the lower house. Lecornu has also pledged not to use a constitutional power to ram the budget bill into law without a vote as has been done in previous years. But the Socialists have also demanded a tax on the ultra-rich, which Lecornu has refused and not included in the draft budget, without which they have threatened to overthrow his cabinet. “We need to tax the ultra-rich and mega-inheritances,” Socialist party leader Olivier Faure said earlier on Friday. “If there is no progress by Monday, it will be over.”
French economist Gabriel Zucman, 38, has said such a tax on the mega-wealthy could raise around 20 billion euros ($27 billion) per year from just 1,800 households. The idea is to make people with at least 100 million euros in assets pay a minimum tax of two percent on that wealth. Faure gave the example of French billionaire Bernard Arnault — one of the world’s 10 wealthiest people — whose fortune last week jumped by a staggering $19 billion overnight. Arnault owns about half of LVMH, which sells luxury goods such as Louis Vuitton handbags and Dom Perignon champagne.
Parliament could discuss a proposal from the left wing to add a so-called Zucman tax on Saturday. But the far right and government are against taxing professional assets, which this tax would target. The government instead wants to tax wealth management holdings with at least five million euros ($5.8 million) in assets. The government expects to be able to raise 1 billion euros ($1.1 billion) from around 10,000 taxpayers with the measure. France has been mired in political deadlock since President Emmanuel Macron last year called for snap parliamentary polls, which he hoped would cement his power but instead ended up in his centrist bloc losing its majority and the far right gaining seats.
© 2024 AFP
