French National Assembly Faces Heated Debate on Zucman Wealth Tax and Pension Reform Suspension

On October 31, 2025, the French National Assembly engaged in a critical and high-stakes debate focused on two pivotal issues: the proposed Zucman wealth tax targeting high fortunes, and the contentious suspension of pension reform. The discussions come amid growing calls from the Socialist Party (PS) for greater fiscal justice and have the potential to reshape the country's economic and social policy landscape.

The Zucman tax, named after economist Gabriel Zucman, proposes a minimum 2% tax on fortunes exceeding 100 million euros, with estimates from PS deputy Philippe Brun suggesting it could generate around 15 billion euros. However, the tax faces varied reactions; while the Socialist Party supports the initiative, other left-wing factions remain skeptical, describing it as a "pass-through tax." The PS has also offered a compromise tax set at 3% starting at 10 million euros, excluding innovative and family businesses. Opposition parties such as the National Rally (RN) and Renaissance stand firmly against the tax, with some factions proposing alternative versions of wealth taxation. Prime Minister Sébastien Lecornu actively participated in the debates, emphasizing caution against rapid tax implementations that might jeopardize business stability.

Simultaneously, the Assembly reviewed the suspension of the recent pension reform — a highly divisive issue. The debate, held in a separate commission on social affairs, centered on whether to suspend a reform raising the legal retirement age to 64. The PS linked their stance on not censuring the government to the pension reform's suspension. Parties including Les Républicains (LR), Horizons, RN, and PS signaled support for suspension or repeal, while La France Insoumise (LFI) and the Ecologists opposed it, pointing out the proposal merely delays the reforms without altering their substance.

The legislative timetable adds pressure, with constitutional deadlines requiring the budget and social security financing laws to be finalized by late December. Debates have faced procedural complexities, including handling over 3,500 amendments related to budget matters.

These proceedings illustrate deep political divides on both wealth taxation and social welfare, reflecting broader debates on economic equity and public spending in France's current political climate. The outcomes remain uncertain as parties weigh political, economic, and social considerations amid intense parliamentary scrutiny.