French Socialists Threaten No-Confidence Vote Over 2026 Wealth Tax Dispute

France's Socialist Party has issued a strong ultimatum to Prime Minister Sebastien Lecornu's fragile minority government, threatening to bring it down by Monday if demands for a wealth tax on the ultra-rich are not met in the 2026 budget. The Socialists want an additional €15 billion to €20 billion in taxes targeting billionaires, proposing a minimum two percent levy on fortunes exceeding 100 million euros, a measure backed by economists as potentially raising significant revenue. Despite Lecornu's earlier promise to suspend controversial pension reforms to secure Socialist support, the party feels the current budget disproportionately burdens retirees, youth, and families instead of the wealthy and has seen no willingness from the government to compromise. The Socialists, holding pivotal seats in a divided National Assembly, could align with both far-left and far-right factions to topple the government through a no-confidence vote. This political tension has led to concerns about economic instability, highlighted by a recent downgrade of France's credit rating by S&P Global due to political uncertainty. The standoff underscores the broader struggle over France's fiscal policy and social equity as budget debates intensify.