French PM to extend tax on big companies to appease the left, FT reports

• He is expected to announce on Monday that he will either use special constitutional powers known as the 49.3 clause to bypass lawmakers or adopt the budget by decree.
• Either manoeuvre will lead opposition parties of the far right and far left to call a no-confidence vote in the National Assembly.

The French government's decision to extend the tax on large companies appears to be an attempt to quell leftist opposition, which adds a layer of political tension as it could provoke no-confidence votes. Such instability might impact investor sentiment regarding French equities and broader Eurozone risk, making it a key development to watch in the context of upcoming fiscal policies and parliamentary dynamics.