At 75, the France Unbowed leader is pitching a left turn on fiscal policy: higher taxes on financial capital and affluent households alongside more funding for public services and climate-focused projects. He wants more of France's savings to stay in-country, directing €100 billion per year to homebuilding, public transit, the greening of industry, sovereignty in digital technologies, and other strategic priorities. He again advocated wiping out a portion of the sovereign debt that the European Central Bank holds.
His party's 20-page plan lays out figures for next year: €106.6 billion in extra revenue paired with €81.7 billion in spending. The document says this path would set France on a trajectory to steady the debt-to-GDP ratio within five years, and, if he wins next year, would help cut the 2027 deficit by €25 billion. Mélenchon rejected spending cuts, arguing the adjustment would come from tax receipts and investment.
He highlighted a proposed "wealth tax on assets above €100 million" inspired by economist Gabriel Zucman, alongside fresh levies on financial transactions and cryptocurrencies. He further proposes merging Caisse des Dépôts, Bpifrance, and Banque Postale to create one state-owned banking consortium.
At a press conference on Wednesday, he said, "It is necessary to make financial capital contribute, because it is financial capital that has benefited fully, all along and in every possible way - from lower wages and reduced incomes to tax breaks of every kind - up to now." He added, "Why? Because it is the only option that does not have recessionary effects. When you tax a pension fund, or any financial institution of that kind, it does not cause a decline in economic activity."
Mélenchon's rollout came a week after Marine Le Pen presented her own deficit plan. Her measures include a lower retirement age, taxes on share buybacks, increasing levies on multinationals and making massive cuts to France's contribution to the EU budget. She is heading to Brussels on Wednesday to promote her program before EU leaders convene. Mélenchon said he would also cut France's EU contribution under certain conditions, without giving details.
A recent poll suggests both could reach a runoff in May 2027, with Le Pen around 36% in the first round and Mélenchon near 18%.
Wealth tax proposals move capital before they ever become law. Market Briefs covers that policy free every morning.
Negotiations are kicking off in the National Assembly, which is deeply split, to pass a 2027 budget, and markets are reacting. Political turmoil and widening deficits have hit French assets, driving borrowing costs to levels last witnessed nearly twenty-five years ago. Last week, the spread between French 10-year debt and Italy's reached a record level.
Mélenchon's rhetoric matched the moment. He called Bank of France Governor Emmanuel Moulin "ignorant" and labeled Euronext NV president Stephane Boujnah "a speculator, a crisis profiteer and an exploiter of the people."
If taxes on capital rise while the state steers more savings into housing, transport and green industry, the after-tax math for asset owners and financial firms could shift, and so could which sectors soak up new investment. Any move on ECB-held debt or changes to France's EU contribution would add another variable to watch. Translation for your wallet: France's policy direction is in flux, and that influences where capital flows and how it gets taxed.
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