Bernard Arnault, the CEO of LVMH, has sparked controversy by criticizing proposed tax increases on large companies, hinting at the potential relocation of his luxury group from France. During his remarks on social media, Arnault stated, "Je n'ai bien entendu jamais dit que nous allions délocaliser le groupe LVMH. Cette affirmation est fausse". His comments came amid discussions about the French government’s plans to implement a new surtax aimed at large businesses, meant to raise around 8 billion euros by 2025.
Speaking about the looming surtax, which he claims would increase corporate taxes by 40%, Arnault expressed disbelief at the French government’s decision. He compared the corporate tax rates to those of the United States, where he pointed out, "the taxes will fall to 15%, with subsidies available for various industries." He noted his concerns about France potentially taxing its own production: "On va taxer le made in France... Pour pousser à la délocalisation, c'est idéal!" This statement highlights his view of the French government’s actions as counterproductive to maintaining domestic industry.
Arnault emphasized LVMH’s contributions to the French economy, noting the company employs around 200,000 people directly and indirectly across the country. LVMH’s significant presence includes 43,000 employees and numerous boutiques and workshops within the U.S., which are part of its strategy to capitalize on one of the richest markets for luxury goods. "Quand on revient en France, c'est un peu la douche froide," he stated, illustrating his disappointment with the regulatory environment.
The reaction to Arnault’s comments has been fierce. Sophie Binet, Secretary General of the CGT, criticized him as a "fraudeur fiscal," drawing attention to his past connections with tax evasion discussions highlighted by the Paradise Papers released in 2017. Binet argues, "Les grandes entreprises n'ont jamais fait autant de profits... dès qu'on parle de les mettre à contribution pour l'intérêt général, elles viennent pleurnicher. Ce n'est plus possible." Her remarks underline the resistance many feel against wealthy corporations attempting to evade accountability through such relocations.
Further igniting the debate, Antoine Léaument, LFI deputy, publicly stated his belief on social media, proposing potential state action against those who avoid taxes, asserting, "L’État a un pouvoir de réquisition. Réquisition des biens de ceux qui trahissent leur pays." While Léaument's comments have stirred controversy, legal experts suggest such actions would be nearly impossible under current French law, considering property rights and constitutional protections.
Meanwhile, Éric Lombard, France’s Minister of Economy, addressed the fallout from Arnault's critique, noting the surtax is significantly lighter than previously proposed taxation initiatives and is only meant to last for one year. Lombard countered Arnault's fears about permanent taxation by challenging the notion of increasing taxes again: "Qui va les baisser de 40%?" he questioned Arnault and other business leaders.
Critics have expressed concerns over Arnault’s warnings about job cuts and relocations, with Michel-Édouard Leclerc, president of E.Leclerc, describing such sentiments as blackmail against the French government. He stated there should be more focus on propping up local suppliers and sustaining jobs rather than threatening relocation. Arnault fired back by advising Leclerc to support French products more vigorously, criticizing his supermarket practices.
Arnault's comments reignite the longstanding debate over corporate taxation and the responsibility of multinational corporations to contribute to the economies where they operate. While there may be valid points on both sides—concerns over competitiveness for businesses and the obligation to uphold national economic health—the very future of France's industrial and economic infrastructure appears to be at stake.
With Arnault continuing to negotiate the waters between economic policy and corporate interest, it remains unclear how the government will respond to the substantial pressure from its business leaders. Whether LVMH will truly shift its allegiance across the Atlantic or work to adapt to the changing tax landscapes back home remains to be seen. This discourse highlights the complexity of modern corporations and their ties to national identity and fiscal responsibility.