Bernard Arnault, one of the wealthiest individuals in the world, has sharply criticized French President Emmanuel Macron’s economic policies, accusing them of undermining the country’s economy.
Arnault, who leads LVMH, the world’s largest luxury goods company, voiced his concerns on January 28 about the planned tax hikes on French businesses. He called it a “tax on made in France” and warned that it would drive companies to relocate abroad.
“I just came back from the USA, and there’s a real sense of optimism there,” Arnault remarked after attending the U.S. presidential inauguration. “But when you return to France, it’s like a cold shower.” He pointed out that in the U.S., tax rates will drop to 15%, and several states are offering subsidies for workshops, while President Trump actively supports such measures.
In contrast, Arnault noted the challenges faced in France, where the government is considering a 40% tax on domestic production. “It’s hard to understand. They want to tax ‘made in France’ products,” he said, adding, “This will only slow down our economy. It’s a surefire way to push businesses abroad.”
Arnault expressed doubt that the government’s intentions align with these outcomes, but remained adamant about the inevitable effects. “If they push through with their plans, it’ll be the end result. There’s no other way.” He also referenced LVMH’s efforts to explore solutions to reduce France’s bureaucratic hurdles. However, he joked that the moment they attempt to tackle that, “we’ll be pursued, it’s impossible.”
Reacting to Arnault’s comments, government officials acknowledged his concerns, emphasizing the necessity of collective efforts to address the country’s fiscal challenges. “When a prominent entrepreneur voices such worries, we must listen,” said Benjamin Haddad, Minister Delegate for Europe.
France faces significant budget issues, with a public deficit exceeding 6% of GDP, far above the targeted 4.4% for 2024. The national debt has reached over 113% of GDP, one of the highest in Europe. In December, Moody’s downgraded France’s credit rating, citing growing fiscal concerns. The EU has included France in its Excessive Deficit Procedure, forcing the government to take corrective measures. However, President Macron’s loss of a parliamentary majority has left the government with limited options.
Arnault, who is worth around €200 billion, is not only France’s richest citizen but also the third wealthiest person globally.
