PARIS (Reuters) -France’s Socialist Party said on Thursday it will raise taxes on the super rich and reject austerity if it takes the reins of power after the expected fall of Prime Minister Francois Bayrou next week.
Opposition parties have said they will vote against Bayrou in a confidence vote on Monday which he called as he seeks to push through unpopular plans for a budget squeeze in 2026.
President Emmanuel Macron has so far ruled out holding snap elections if Bayrou loses, so he would probably have to find a new premier – possibly from the centre-left after his last four centre-right ones failed to deal with a fragmented parliament.
“It is time to break with the austerity and unfair fiscal policy of the Macronists. Another path is possible: a left-wing, fair path that would improve the French people’s lives,” Socialist Party chief Olivier Faure said on X on Thursday.
If in government, “we’d look for new sources of income, including in the pockets of the wealthy,” Faure said after meeting Bayrou. The prime minister has been holding talks with key parties ahead of the confidence vote.
Faure said the Socialists were ready to work with all political parties on a case-by-case basis.
The Socialists presented a counter-budget on Saturday, which would reduce the deficit by 21.7 billion euros ($25.40 billion) – less than Bayrou’s plan for a reduction of nearly 44 billion euros.
The Socialists’ plan includes 14 billion euros in budget cuts and 26.9 billion euros in tax hikes, mainly coming from a proposed tax of at least 2% on personal wealth greater than 100 million euros.
France is trying to tame debt that has risen to 113.9% of GDP and a deficit that was nearly double the EU’s 3% limit last year.
Macron was first elected in 2017 on promises to break the right-left divide and modernise France with growth-friendly tax cuts and reforms.
Many of his plans have foundered against a series of crises including protests, COVID-19 and runaway inflation.
France’s leftist parties are also facing challenges. They ran on a united platform in last year’s snap parliamentary elections, but are now deeply divided.
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(Reporting by Dominique Vidalon, additional reporting by Leigh Thomas; Writing by Ingrid Melander; Editing by Andrew Heavens)
