France is quietly experiencing a historical regression that undermines the foundations of its social contract. While its leaders persistently highlight the importance of valuing work, innovation, and risk, the nation has reverted to a society reminiscent of the 19th century, dominated by inherited wealth. Supported by numerous reports, books, and studies, an article by Le Monde on May 7, 2025, sheds light on France's troubling wealth inequality and the overwhelming dominance of inherited fortunes, highlighting a trend that contradicts the promise of equal opportunity.
Today, inheritance significantly outweighs work in wealth formation, creating a social order where the most substantial fortunes are increasingly reserved for individuals from wealthy families. In the early 1970s, inherited wealth accounted for 35% of France's national wealth; today, it has surged to 60%. This dramatic shift is attributed to several factors: the rise of the stock market and real estate on one side and the decline of work income on the other, due to slowed growth and rising unemployment. Surprisingly, this situation has not prompted the government to correct its course.
Amid broad fiscal deregulation, recent decades have seen policies that perforate inheritance taxation through multiple exemptions. This system suffers from a significant handicap: it is very unpopular, even among those with little wealth who are unlikely ever to be affected by it. The growing gap between what work provides and what inheritance guarantees has led to multiple damages within society. The rent economy does not favor the future; instead, it sustains an underlying malaise.
Younger generations bear the greatest burden, increasingly struggling to enter adulthood unless they receive a gift or an inheritance that allows them to become homeowners. Due to low salary increases, work no longer functions as a social elevator, exacerbating the stagnation of an already unequal society. The risk of this heir-dominated system persisting is further heightened by the aging population, as baby boomers, who are wealthier and have fewer children than past generations, leave behind ever larger inheritances.
The last attempt at tax reform in France dates back to 2013, proposed by Socialist Prime Minister Jean-Marc Ayrault. However, it was rejected by President François Hollande, who deemed the issue too politically explosive. Since then, no serious discussion around a new fiscal pact has emerged among the various political forces, as political positions have become sharply polarized. Emmanuel Macron's "no new taxes" stance, now embedded as doctrine in a country with high mandatory levies, does not exempt France from the urgent need for comprehensive reform, especially as it must find nearly €100 billion by 2029 to rein in its debt.
Taxes and social security contributions stifle wage growth, while the proliferation of inheritance loopholes enables tax optimization for the wealthiest. Ignoring or refusing to address this issue under the pretext that no majority exists for reform only deepens the roots of France's societal malaise.
Further compounding these issues is the increasingly unequal distribution of income in France. In 1996, the top 10% of earners received 22.2% of the total income mass, while the bottom 10% received only 3.3%. Fast forward to 2022, and the richest 10% have increased their share to 24.4%, while the poorest 10% have seen their share stagnate. The gap between these two groups has widened, with the ratio of income received by the top 10% compared to the bottom 10% growing from 6.7 to 7.4 times.
Between 2014 and 2021, the share of declared income obtained by the richest 1% increased from 6.5% to 7.7%, primarily driven by gains among the wealthiest 0.1%. This trend highlights a slow but persistent widening of income disparities that began in the mid-1990s. While there have been phases during which the gaps narrowed, the current trajectory indicates a deep, enduring fracture within French society.
In the past, periods of economic growth led to improved income distribution, particularly from the 1970s to the 1980s. However, the current landscape starkly contrasts with those times, as policies favoring the wealthy continue to dominate. The situation is not merely a statistical anomaly; it reflects a broader societal issue that threatens the very fabric of France's social contract.
The implications of this growing inequality are profound. As the wealth gap expands, social mobility diminishes, leading to a society where opportunities are increasingly dictated by the circumstances of one's birth rather than individual merit or hard work. This regression poses a significant threat to social cohesion and the principles of equality and justice that underpin the French Republic.
As France grapples with these pressing issues, the need for a comprehensive reassessment of its fiscal policies and social contracts has never been more urgent. Political leaders must address the widening chasm between the wealthy and the rest of society, as failure to do so could result in long-term consequences that undermine the nation's stability and prosperity.
In conclusion, France stands at a critical juncture. The historical regression towards a society of heirs poses a significant challenge to the ideals of equality and opportunity that many believe should define the nation. To reclaim its commitment to social justice and fairness, France must confront its growing wealth inequality and reimagine a future where all citizens have an equal chance to succeed, regardless of their familial background.
