France's economy minister would not oppose tax on TotalEnergies profits

France's Economy Minister Roland Lescure indicated he would not oppose a potential surcharge on TotalEnergies' profits if proposed in parliament. However, he cautioned against viewing tax increases as a magic solution for France's fiscal deficit. Lescure assured that the government plans to present a budget without raising taxes, though he acknowledged that parliament could decide otherwise.

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It is undeniable that in this crisis TotalEnergies will make a lot of money.

Lescure's comments come as the debate over taxing TotalEnergies' profits intensifies, particularly given the company's expected high earnings amid rising oil prices since the war in the Middle East began. He acknowledged that "it is undeniable that in this crisis TotalEnergies will make a lot of money." The minister noted that the company is currently "doing its part" by capping fuel prices at its service stations, a measure that will be extended for two more weekends in May and June.

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I will not oppose a potential surcharge on TotalEnergies.

Despite the government's intention to avoid tax hikes, Lescure warned that achieving a 5% deficit target by 2026 will be challenging due to the ongoing crisis. He described the French economy as "resilient but facing headwinds," noting a pause in growth during the first quarter. He expressed confidence, however, that France is "better protected and less exposed" than its neighbors.

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It's a debate that will have to take place.