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French left-wing deputies save government article targeting ultra-rich in budget committee
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On Thursday, October 8, during the examination of the 2027 budget bill in the French National Assembly's finance committee, left-wing deputies saved a government article targeting the ultra-rich from being scrapped by center-right, right-wing, and far-right deputies. The article concerns the 'apport-cession' mechanism, created in 2012, which allows shareholders selling a company to defer taxes on capital gains if they reinvest the proceeds. While intended to encourage investment in the productive economy, the mechanism is widely used to avoid taxation, with a July 2025 finance ministry note warning that deferred gains may never be taxed. Socialist deputy Estelle Mercier stated it is the only budget measure affecting the wealthiest. The left voted en masse against deleting the article, though it was subsequently slightly reduced by an amendment. The bill will be debated in full session next week.
Source report
Socialist group president Boris Vallaud and Socialist MP for Meurthe-et-Moselle Estelle Mercier at the National Assembly in Paris, April 16, 2026. JULIEN MUGUET FOR "LE MONDE"
A peculiar political choreography unfolded on Thursday, October 8, at the National Assembly. During the examination of the 2027 budget bill in the finance committee, the left-wing came to the government's rescue to save a highly sensitive article that centrist, right-wing, and far-right deputies sought to torpedo. They partially succeeded.
"This is the only measure in this budget that will primarily concern the wealthiest," explained Estelle Mercier, MP for Meurthe-et-Moselle and lead Socialist spokesperson on the bill. "On the left, we therefore voted overwhelmingly against the removal of the article." The proposal was nonetheless slightly scaled back afterward by an amendment.
At the heart of the debate lies a seemingly technical but highly political issue: the apport-cession (contribution-disposal) mechanism. Created by an amending finance law in 2012, this provision concerns shareholders who sell a company. It allows them to defer paying tax on capital gains, provided they reinvest the proceeds from the sale.
On paper, the mechanism aims to encourage affected taxpayers to reinvest in the productive economy. In practice, it is used as a means of avoiding taxation. "From one deferral to the next, there is a strong risk that these capital gains will never be subject to income tax," noted a July 2025 report from the Directorate General of Public Finances. The current system "creates configurations in which the initial contribution capital gain is never taxed," the Ministry of Economy and Finance now confirms, "which constitutes a loophole far removed from the original purpose of the mechanism."
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Politique : Toute l’actualité sur Le Monde.fr.Western