Lecornu's Budget Proposals Stir Tensions: A Step Towards Democratic Empowerment?

French Prime Minister Sebastien Lecornu outlined a wealth tax proposal on Friday in a bid to secure support from leftist factions for the 2026 budget. The move was quickly deemed 'insufficient' by the Socialist Party, though negotiations remain open.

Lecornu's discussions with Socialist leaders included a financial wealth tax that exempts business owners' professional assets, according to two sources. Earlier, Lecornu declared he would abstain from using article 49.3 constitutional powers to push the budget through without parliamentary votes, a decision welcomed, yet considered inadequate, by both Socialist and National Rally parties.

The announcement saw a slight rise in French bond yields, reflecting ongoing uncertainty. Despite the divided parliament, Lecornu seeks to promote democratic processes, especially following his appointment after the ousting of François Bayrou over stringent budget plans. Opposition leaders, while approving of Lecornu's effort to empower parliament, stress the need for substantive policy changes.

(With inputs from agencies.)