Paris: French Prime Minister Sebastien Lecornu is preparing to introduce a bold tax initiative aimed at individuals earning over €250,000 annually, or €500,000 for couples, as part of efforts to win support from the Socialist opposition for the 2026 state budget. According to the financial daily Les Echos, the proposed measures are expected to generate an additional €3 billion in revenue next year.
The plan includes renewing a one-off tax originally introduced by former Prime Minister François Bayrou, designed to ensure that high-earning households contribute at least 20% of their income in taxes. This initiative targets fiscal fairness and has been positioned as a compromise to attract leftist support without alienating the broader electorate.
In addition, the government is set to crack down on the use of holding companies by the super-wealthy, which are often used to circumvent dividend taxes. Approximately 30,000 such financial structures have been identified, and the crackdown is projected to raise over €1 billion in 2026. Combined, the measures are expected to bring an additional €4–4.5 billion from France's wealthiest individuals.
Lecornu, who became President Emmanuel Macron’s fifth prime minister in two years after Bayrou’s budget plan led to his ouster, faces a divided parliament with no clear majority. His political survival hinges on securing support from rival parties, especially the Socialists, who have demanded a 2% wealth tax on the top 0.01% of earners as a condition for backing the budget.
The prime minister’s announcement underscores the delicate balancing act of navigating fiscal reforms, social equity demands, and parliamentary divisions while seeking to stabilize his minority government ahead of the crucial 2026 budget debates.