“To encourage relocation, it's ideal!”: following Bernard Arnault's comments denouncing the proposed surtax, the government responds

Following the comments made on Tuesday, January 28, by LVMH Group CEO Bernard Arnault regarding the significant increase in corporate taxes, the government spokesperson responded to him and called for efforts from everyone.

The French government stated on Wednesday “understands (re)the anger” of LVMH CEO Bernard Arnault regarding the tax increases that will affect large French companies, while still considering that “everyone must take part in the efforts”.

“I understand his anger. I understand that in the budgetary situation we find ourselves in, everyone must take part in the efforts”, estimated government spokesperson Sophie Primas during the report of the council of ministers. She was responding to threats the day before from the head of the world's number one luxury goods company to leave for the United States because of this “made in France tax” which, according to him, “encourages relocation”.

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Comparing Mr. Arnault and his group to “an economic monument” , the spokesperson for the government of centrist François Bayrou took care to point out that she belonged to “a pro-business government” which planned that this surcharge would be “temporary” , for a an.

“Nobody believes it”

The government is working on “a French competitiveness plan to accompany the European competitiveness plan and therefore our pro-business, pro-company, pro-economic development policy is not in doubt”, she further justified. Bernard Arnault, the richest man in France, went to Washington for Donald Trump's inauguration, and he said he appreciated that in the United States, “taxes will drop to 15%, workshops are subsidized in a series of states”.

“When you come back to France and you see that we are preparing to increase taxes by 40% for companies that manufacture in France, it's incredible. To encourage relocation, it's ideal!”, he said during the presentation of LVMH's results. While the government promised to only apply this tax for one year, Mr. Arnault stated: “Nobody believes it, once we have increased taxes by 40%, who will lower them by 40% ?”.

“France has an incredible talent: expelling successful entrepreneurs!” , criticized Éric Ciotti, president of a group far-right in the Assembly, while on the same network, the head of the Communist Party, Fabien Roussel, denounced the billionaire's cardboard “patriotism”. The corporate tax surcharge, planned for the largest fortunes, is included in the 2025 budget which must be the subject of a compromise on Thursday between the Senate and the National Assembly. This surtax should bring in some 8 billion euros to the State this year.

For his part, Antoine Léaument, the LFI deputy, reacted strongly on X: “If Bernard Arnault wants to go to the USA, let him go. The State has the power to requisition. Requisition the property of those who betray their country and flee taxes. Force the law, down with the traitors.”