On October 31, 2025, French lawmakers rejected a proposed wealth tax on assets over €10 million demanded by left-wing parties, opting instead for milder fiscal adjustments to plug a €60 billion budget hole amid ongoing political gridlock.

A wealth tax levies annual fees on net assets (like property minus debts) of the very rich, unlike income tax on earnings; France had one until 2017 but scrapped it over flight risks. Reviving it debates fairness—taxing stored wealth to fund social programs—versus scaring off billionaires who might relocate.

This averts a potential exodus of ultra-wealthy like Bernard Arnault, stabilizing luxury stocks like LVMH and supporting 0.7% GDP growth; it frustrates left allies, risking coalition fragility and higher deficits (to 5.5% of GDP), while aiding competitors in low-tax Italy by keeping French capital domestic but delaying green investments.