French National Assembly Adopts Controversial 26 Billion Euro Tax on Multinationals in 2026 Budget

On October 28, 2025, the French National Assembly approved a sweeping amendment to the 2026 budget that introduces a new tax targeting the profits of multinational corporations. The measure, backed primarily by the left-wing party La France Insoumise (LFI) and the far-right Rassemblement National (RN), aims to recalibrate multinational profits according to their real economic activity in France as a strategy to combat tax evasion and aggressive tax optimization.

The amendment, proposed by Éric Coquerel (LFI), passed by a significant margin of 207 votes in favor to 89 against, despite strong opposition from the government and economy minister Roland Lescure. Lescure denounced the move as a "middle finger to 125 countries," referring to France's extensive network of tax treaties, and warned it could create "20 billion euros of trouble" including legal challenges and potential double taxation claims. He also noted that the OECD’s ongoing introduction of a minimum 15% tax on multinational profits, expected to come into effect next year, will generate a more modest 500 million euros.

Proponents, inspired by activist organization Attac and economist Gabriel Zucman, emphasize that the new "universal tax" could yield as much as 26 billion euros for the state budget—significantly expanding public resources to address economic inequality and unfair tax practices. Manuel Bompard, LFI’s coordinator, defended the measure’s compliance with both French and international laws, even as budget rapporteur Philippe Juvin expressed legal concerns.

This tax initiative had been previously introduced during last year’s budget discussions but was rejected in its revenue section. The adoption marks a substantial political victory for the left and RN, signaling a growing willingness within the Assembly to challenge established fiscal frameworks and multinational tax strategies.

The debate remains charged, highlighting the tensions between sovereignty in tax policy, international legal frameworks, and economic diplomacy. With Macronist deputies caught off guard, the government now faces complex legal and diplomatic hurdles ahead to implementing the tax amid broader discussions on international corporate taxation reforms.