France's Bold Move: Billionaires Tax Hits the Wealthy

France's National Assembly has approved an amendment proposing a 2% tax on individuals with assets over 1 billion euros. The 'Zucman amendment,' inspired by economist Gabriel Zucman, aims to raise approximately 13 billion euros. The proposal requires Senate approval, amid broader 2025 budget reforms to tackle public finance deficits.

France's National Assembly has taken a significant step by approving an amendment imposing a new tax on the nation's wealthiest citizens as part of the 2025 budget plan. The 'Zucman amendment' calls for a 2% tax on fortunes exceeding 1 billion euros.

While inspired by economist Gabriel Zucman, the amendment aims to generate 13 billion euros in additional revenue. However, it is yet to be fully enacted as it awaits clearance by the Senate. Budget discussions, which are likely to be contentious, will continue until December.

In conjunction with this proposal, France's 2025 budget aims to balance public finances by introducing several tax hikes and expenditure cuts, mounting up to 60 billion euros. The government may face resistance from opposition parties, potentially leading to the use of special constitutional powers to advance the agenda.

(With inputs from agencies.)