France’s right-wing minority government has faced a significant setback after left-wing and centrist deputies teamed up to transform a temporary tax on the wealthy into a permanent measure. Prime Minister Michel Barnier’s cabinet is now considering invoking Article 49.3, a constitutional tool that would allow the government to pass the 2025 budget without a vote in the National Assembly.
The government initially proposed a three-year tax on individuals earning over €250,000 and couples earning more than €500,000 annually to address France’s growing public deficit, which could reach 6.1% of GDP in 2024. However, opposition deputies turned it into a permanent levy in a late Tuesday vote. This unexpected move is estimated to generate €2 billion in 2025 but has sparked backlash from President Macron’s Rebirth party, with some calling it “permanent tax revenge.”
The cabinet will debate on Wednesday whether to bypass parliament using the controversial Article 49.3 to ensure the government’s version of the budget is adopted.
