MEPs adopt a measure on “super-dividends” against the advice of the government

Big quack for the executive. MEPs adopted on Wednesday at first reading, against the advice of the government, an amendment to the budget for 2023 aimed at dissuading large companies from distributing exceptional results in “super-dividends”, through a temporary increase of a tax. The amendment to the finance bill for 2023, had been tabled by the Modem, which is part of the presidential camp, but was the subject of an unfavorable opinion from the executive.

The Minister of Public Accounts Gabriel Attal thus warned against the negative “signal effect” of such a device for the attractiveness of the country. He also recalled that the government already wanted to transpose into the budget an agreement between European countries to make use of the “superprofits”, these exceptional profits made by certain companies.

Support from the left and the RN

But the Modem amendment was adopted (227 votes for, 88 against) thanks in particular to the support of left-wing political groups members of the Nupes and that of the RN. He also received the support of 19 deputies from the Renaissance Macronist group. MEPs from the Horizons group mostly abstained.

“We have a perfect illustration of the fact that you are in your lane and that you do not want to leave it”, launched the government the deputy LFI Manuel Bompard, underlining the fact that the executive, saying it is open to the proposals of the deputies, had not supported an idea coming from the Modem.

Series of setbacks for the government

“It is a very reasonable, very constructive amendment,” said MP RN Jean-Philippe Tanguy. The adopted text targets large companies, above a certain turnover threshold. It provides for “a temporary increase of 5 points in the single flat-rate levy”, bringing it to 35%, on dividends distributed or share buybacks, when this income is “20% higher than the average income distributed between 2017 and 2021”.

This snub for the executive comes after a series of setbacks at the start of Wednesday’s examination at first reading of measures contained in the PLF for 2023. The oppositions notably succeeded in rejecting at first reading, by 192 votes against 175, the “introductory” article of the budget, in which appeared the key objective of containing the public deficit to 5% of GDP in 2023.