What political reforms in France mean for corporate finances and treasury strategies

France is currently navigating significant parliamentary and budgetary reforms ahead of its 2026 budget debate. New proposals—such as a wealth tax on high-net-worth individuals and tighter corporate tax measures—are creating fresh regulatory risk for companies.

For corporate treasurers and business owners, this evolving landscape means one thing: it’s time to review liquidity management, risk exposure, and investment strategy. In this article, we explore how upcoming reforms may impact businesses, and how a strategic treasury allocation—leveraging both liquidity-plus and return-oriented ETF exposures—can help companies stay agile.

The reform agenda and its implications

Key reform proposals include:

• A tax on financial assets and holding companies, targeted at ultra-wealthy individuals, as part of the 2026 budget.
• The suspension or revision of major structural reforms (e.g., pension reform), increasing uncertainty in spending and deficits.
• A budget constraint to cut the deficit to 4.7 % of GDP next year, which may require both tax hikes and spending cuts.

For businesses, these reforms translate into: higher burden via taxes, possible shifts in corporate benefits and allowances, and increased volatility in cost of capital/liquidity. Treasury functions must prepare for more fiscal risk and less margin for error.

Key treasury impacts for companies

1. Higher tax and regulatory burden: If wealth taxes or corporate surcharge measures go ahead, companies may face higher demands on cash flow and fewer discretionary reserves.
2. Funding cost sensitivity: France’s political risk and increasing debt may pressure borrowing rates and access to capital.
3. Cash-flow visibility will deteriorate: With reform uncertainty, budgets and forecasts may be harder to predict, making liquidity buffers more important.
4. Investment decisions may need flexibility: Committing capital to long-term projects becomes riskier; short-term, liquid solutions gain appeal.

How treasury strategies should adapt

A. Strengthen liquidity management

• Maintain a robust cash buffer, ideally invested in highly liquid instruments that can be swiftly redeployed if tax or regulation shifts.
• Avoid locking large sums in long-term deposits that may lose flexibility.

B. Review investment mix with agility

• For short-term holdings, use instruments aligned with your liquidity needs and risk tolerance.
• For excess treasury, consider medium-term return-oriented exposures that remain flexible but offer yield.

C. Use a two-pillar approach

• Liquidity pillar: A product offering daily redemption, minimal credit risk and flexibility.
• Opportunity pillar: An ETF or investment that benefits when market cycles shift (e.g., lower rates or spread tightening).

By balancing these, companies stay ready for reforms yet positioned for upside.

Why Velesios makes this easy

Through the Velesios platform, both companies and individuals can streamline this strategy:

• Rapid account opening (corporate or individual securities account)
• Execution/custody via Interactive Brokers
• Order aggregation for cost efficiency
• Dashboard designed for treasury oversight

Conclusion

The reform agenda in France presents measurable risk but also tactical opportunity. For companies, the smart path is neither freeze nor overcommit—but adaptive allocation. By combining liquidity readiness with strategic yield exposure, treasuries can navigate the reforms while preparing for whatever comes next.

FAQ: reforms and treasury strategy

Will the wealth tax hit companies?
It primarily targets ultra-wealthy individuals, but the broader ripple effect may raise overall tax pressure including for companies.

‍Should we stop new long-term investments?
Reassess timing and flexibility. Projects are still valid, but ensure capital is not locked when regulatory risk is high.

‍Is this just a transient issue?
Maybe—but given the 2026 budget and political fragmentation, uncertainty may persist for some time.

‍Can this approach apply to both individuals and companies?
Yes—treasury strategies using liquidity + yield are relevant for both profiles.

Sources & references

• French PM plans new tax on people earning over €250,000 a year (Oct 4 2025) Reuters
• After winning pensions concession, France’s Socialists eye billionaire tax (Oct 15 2025) Reuters
• Breakingviews – “French fiscal chaos lacks European gendarmes (Oct 15 2025) Reuters
• France gets only brief reprieve from budget pressure (Oct 20 2025) Reuters
• What is in France’s draft 2026 budget? (Oct 2025) Yahoo finance