Michel Barnier's Tax Initiative Targets 300 Large Companies in France
In a recent announcement, French Prime Minister Michel Barnier outlined a plan aimed at addressing the country's fiscal challenges by targeting 300 large companies with a turnover exceeding 1 billion euros. Speaking on France 2 during the program "L'événement," Barnier emphasized that these companies would be asked to contribute to a national effort for a duration of one to two years. He reassured the public that this initiative would not lead to a "tax shock" for the majority of businesses in France, as most companies would not see any tax increases.
The criteria for identifying these large companies align with the definitions provided by INSEE, which classifies a large company as one that either employs over 5,000 individuals or generates more than 1.5 billion euros in revenue. In France, there were 325 such companies recorded in 2022, collectively generating a staggering turnover of 1,834 billion euros, representing over a third of the total added value from non-financial and non-agricultural firms in the nation.
Barnier's focus on these companies comes in light of France's significant national debt, currently standing at 3,228 billion euros, and a projected budget deficit exceeding 6% without corrective measures. The Prime Minister indicated that the tax increases could potentially recover 2 billion euros, which would be crucial for stabilizing the nation's finances. He also mentioned that wealthy individuals would be called upon to contribute more significantly in the upcoming 2025 budget.
As discussions continue, many details regarding the implementation of this tax initiative remain to be clarified, including how the turnover will be assessed and the specific conditions under which these companies will be taxed. Notable companies that could fall under this initiative include major players like TotalEnergies, Airbus, and Accor, among others.
