Three French Socialist senators have tabled an amendment to the 2026 Finance Bill that would compel high-income households to provide interest-free loans to the state.
In a bid to address France’s mounting fiscal pressures, the Senators are reviving a mechanism last used in 1983.
The proposal, filed in the Senate amid ongoing budget negotiations yesterday, targets the wealthiest taxpayers and is projected to raise €6 billion in 2026 without increasing tax rates, newspaper Le Figaro reported.
The amendment, introduced by Senators Patrick Kanner, Thierry Cozic and Claude Reynal, draws inspiration from the “Mauroy loan” enacted in 1983 under then-prime minister Pierre Mauroy during François Mitterrand’s presidency.
It would require affected households to advance a portion of their tax liabilities to the government as a recoverable, interest-free loan, repayable over three years.
The measure would withhold 30 per cent of the 2026 real estate wealth tax (Impôt sur la Fortune Immobilière, or IFI); 30 per cent of the 2025 exceptional contribution on high incomes; 30 per cent of the 2025 differential contribution on high incomes; and 20 per cent of income tax payments in the 41 per cent and 45 per cent brackets for 2025.
These advances would be deducted from future tax bills, effectively turning the wealthy into short-term State lenders at no cost to the government.
The initiative emerges in the wake of the National Assembly’s rejection in October of the “Zucman tax” – a 2 per cent levy on assets over €100 million proposed by economist Gabriel Zucman – and a similar Socialist alternative.
With France’s public debt at 114 per cent of GDP and annual interest payments exceeding €60 billion, the minority government of Prime Minister Sébastien Lecornu faces intense scrutiny over the €50 billion austerity package in the 2026 budget.
The Senate, where the Socialists hold significant influence as part of the left-leaning majority, is now examining the bill following its passage through the lower house.
Supporters view the loan as a pragmatic “solidarity contribution” that avoids permanent tax hikes while bridging immediate funding gaps for social spending and debt servicing.
The Senators estimate it would affect a narrow group of high-net-worth individuals, sparing middle and low-income earners.
Almost 20,000 of the wealthiest households would be affected by this compulsory loan.
Critics warn of unintended economic consequences.
Business leaders and lawmakers argue it could divert capital from private investments, stifling growth in an economy already grappling with 5.4 per cent GDP deficits and sluggish post-Covid recovery.
Economic experts on news outlet BFMTV today called it a “shocking” proposal, smelling like “Sovietisation'”.
Public reaction, as reflected in online comments on the story, has been largely sceptical.
Readers decried the measure as unfair, pointing out that top earners already shoulder up to 75 per cent of income taxes. Repayment might prove illusory amid chronic deficits, they claimed – dubbing the State budget a “bottomless pit”.
The proposal’s fate remains uncertain as it must navigate Senate debates and potential reconciliation with the Assembly.
With no-confidence threats from still looming from all sides, Lecornu’s government may yet need to concede further to secure passage by year end, after which automatic spending cuts take effect.
European Union economic powerhouses France and Italy carry higher debt-to-GDP ratios than Ukraine, according to new International Monetary Fund (IMF) data. https://t.co/NKrsoTpETi
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