French Budget 2026 Debate Intensifies Over Tax Reform and Political Clashes
The 2026 French budget debate heats up with MoDem-led tax reforms on wealthy assets and sharp political confrontations between Gérald Darmanin and RN leader Jordan Bardella.
- • MoDem allies with left-wing groups to pass expanded real estate wealth tax reforms including new asset classes.
- • The coalition for reforms surprisingly includes socialists and the Rassemblement national, diverging from government positions.
- • Justice Minister Gérald Darmanin criticizes RN’s economic policy as contradictory, labeling Bardella as 'communist economic' and accusing RN of dishonesty.
- • Jordan Bardella rebuts Darmanin's accusations by calling him a liar and questioning his record as minister.
Key details
The French Budget 2026 has sparked intense political debate, particularly over proposed tax reforms targeting high-wealth assets. The MoDem party, in a strategic alliance with leftist groups including socialists and the Rassemblement national (RN), has introduced significant measures such as the reform of the real estate wealth tax (IFI). This reform broadens taxable assets to include cryptocurrencies, yachts, classic cars, and euro-denominated life insurance policies. Led by MoDem deputy Jean-Paul Mattei, this shift marks a departure from the government's initial stance and follows François Bayrou's withdrawal from front-line leadership, with his deputies seeking to influence new leadership under Sébastien Lecornu. The reforms are expected to be finalized by year-end after discussions in the Senate.
Meanwhile, Justice Minister Gérald Darmanin has openly criticized the RN for contradictory economic positions amidst the budget discussions. Labeling RN leader Jordan Bardella a "communist economic" figure and accusing the party of economic dishonesty ('taqiya'), Darmanin emphasized the need to focus on government spending rather than raising taxes, which he notes are already the highest in Europe. He warned that La France Insoumise and RN threaten the economic stability of France. Bardella responded by calling Darmanin a liar and questioned his credibility as a veteran minister.
This clash highlights not only the fiscal policy challenges in the 2026 budget but also the sharp political tensions among key players as France navigates complex reforms during a critical period.