French Corporations Sound Alarm on Looming Tax Increases
Major French companies, through AFEP, warn of severe tax burdens in 2025, potentially impacting investments and growth.
- • 117 French companies could face €95 billion in taxes for 2025.
- • This marks a €10 billion increase from 2024.
- • AFEP held its first public press conference in years.
- • Concerns about the impact of taxes on growth and investment.
Key details
Major French companies have issued grave warnings regarding the impact of increased corporate taxes slated for 2025. During a rare press conference held by the Association française des entreprises privées (AFEP) on September 24, 2025, key representatives from various sectors highlighted significant concerns amidst the looming financial pressures. Patricia Barbizet, AFEP's President, communicated that the new fiscal measures could impose an estimated €95 billion burden on 117 member companies, representing a substantial increase of €10 billion compared to the previous year. The 2025 budget proposes a temporary surtax on profits and a tax on stock buybacks, raising apprehensions about their long-term viability and investment capabilities.
This mobilization reflects a noteworthy shift in AFEP's communication strategy, signaling a desire to engage more publicly with governmental financial policymaking following years of private negotiations. Eric Trappier, CEO of Dassault Aviation, echoed these concerns, indicating that the proposed tax hikes could jeopardize growth and innovation in France’s leading industries.
The broader economic landscape in France is further complicated by the financial health of crucial state entities, such as EDF, which is projected to require €460 billion in investments from 2025 to 2040 just to maintain and expand its operations. With such pressing financial realities, the warnings from AFEP may serve as a critical wake-up call regarding the balance between taxation and economic sustainability in France.