The New Popular Front’s (NFP) wonderful triumph in France’s elections has highlighted concern among the rich, who fear a proposed 90% income tax on high earners. Financial planners report a boost in inquiries from citizens considering migration to more fiscally favourable countries.
The NFP’s spending fling, estimated at €150 billion over 3 years, includes boosting minimum wage and public sector pay, lessening the pension age, and freezing essential goods prices. However, Macron’s camp estimates a cost of €300 billion, warning of tax breaks and credits dragging, and mounting income tax.
A Parisian wealth adviser, Gregory Soudjoukdjia, told the FT following Macron’s election call: ‘I’m not sure I’ve had this many calls since the start of my career… our high-end clientele are asking themselves many questions.
Ministers care against the spending fling, given France’s 5.5% budget deficit. Rich citizens are concerned about a potential wealth tax, the diminished flat tax, and higher taxation on salaries, creating an anti-business atmosphere.
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The NFP’s victory has led to political paralysis, with Macron’s centrists and the hard-right National Rally (RN) ruling out a union with the NFP. Macron’s party finds stability, while the NFP demands to govern, leading to a stalemate. ‘Together’ coalition on 168, while the hard-right National Rally (RN) fetched 3rd place with just 143 seats, despite having led the race convincingly after the 1st round of elections just 1 week ago.
A permanent fixture of the French, Melenchon – left and an isolating firebrand dubbed the ‘French Jeremy Corbyn’ – has claimed the NFP must be given the reigns so it can begin implementing its policies. While one Greens party lawmaker speaking on condition of anonymity said bluntly: ‘Melenchon is a problem.’
The President has denied Prime Minister Gabriel Attal’s resignation, maintaining some political continuity ahead of the Olympic Games. Tensions between the left and the Élysée Palace are rising, with no clear resolution in sight. The NFP’s victory has highlighted uncertainty, concerning investors and citizens alike.
By Daily Mail news
