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

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.

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

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  • 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.
Context

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.

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