Impact of Corporate Tax Surcharge on Investment<\/p>\n
By Mathieu Rosemain<\/p>\n
Concerns from Credit Mutuel Chairman<\/p>\n
PARIS, Jan 19 (Reuters) – Extending France\u2019s corporate tax surcharge through 2026 risks driving investment out of the country, the chairman of Credit Mutuel, France\u2019s fifth-largest bank by assets, said on Monday.<\/p>\n
Government’s Budget Compromise<\/p>\n
“If you want investments to continue happening outside of France, this is exactly what you should do,” Daniel Baal told a news conference.<\/p>\n
Long-term Implications for French Economy<\/p>\n
France introduced a temporary surtax on large companies in 2025 that was only supposed to last a year, but it is to be rolled over into 2026 under a budget compromise announced on Friday, which government officials have said should raise about 8 billion euros ($9.31 billion).<\/p>\n
“We’ll end up in France with a corporate tax rate completely uncompetitive with other European countries, and I’m not even talking about non-European countries,” Baal said.<\/p>\n
He feared the surcharge could become permanent.\u00a0<\/p>\n
“If they tell us they might reduce this corporate tax surcharge when the deficit falls below 3%, they might as well tell us it’s never going to happen,” he said.<\/p>\n
Lecornu, who needs to win support from the Socialists to avoid a no-confidence vote as budget negotiations have dragged on for months, kept the surcharge in place to help finance social spending measures in the 2026 budget.<\/p>\n
“The only concern today for the prime minister is to avoid being censured. Is this how we build a future for this country? It’s very concerning,” said Baal.\u00a0<\/p>\n
He rejected arguments that the tax would only affect large blue-chip companies in the CAC 40 benchmark index, saying: “Companies like ours that produce wealth in France and share that wealth in France are the ones that will be impacted.”\u00a0<\/p>\n
($1 = 0.8596 euros)<\/p>\n
(Reporting by Mathieu Rosemain; Additional reporting by Leigh Thomas;Editing by Susan Fenton)<\/p>\n","protected":false},"excerpt":{"rendered":"Impact of Corporate Tax Surcharge on Investment By Mathieu Rosemain Concerns from Credit Mutuel Chairman PARIS, Jan 19…\n","protected":false},"author":2,"featured_media":706451,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5309],"tags":[212093,4340,212091,212092,2000,299,36,133111,212090,212094],"class_list":["post-706450","post","type-post","status-publish","format-standard","has-post-thumbnail","category-france","tag-budget-compromise","tag-corporate-tax-rate","tag-credit-mutuel","tag-daniel-baal","tag-eu","tag-europe","tag-france","tag-french-economy","tag-investment-appeal","tag-social-spending"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115922058840477395","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/706450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=706450"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/706450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/706451"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=706450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=706450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=706450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}