Wealthy French people are taking their wealth out to “safe“ countries such as Luxembourg and Switzerland amid the political crisis in France, the Financial Times reports.
A previous survey by Verian for the Figaro newspaper showed that more than half of French residents are ashamed of the current political situation in the country.
“Wealthy French people are moving their wealth to Luxembourg and Switzerland. The political crisis and tax threats have accelerated the flow of investments to safe havens. French entrepreneurs and wealthy families, concerned about the political crisis at home, are investing record amounts in Luxembourg annuities and moving other assets to supposed safe havens such as Switzerland, the report said.
The publication, citing asset managers, bankers and lawyers, noted that the outflow of private investment from France has increased sharply since President Emmanuel Macron announced early parliamentary elections in June 2024. The newspaper noted that Macron's ability to implement more business-friendly policies before the end of his presidential term in 2027 is “seriously limited“ after the decision to hold these elections.
“Most of the assets we manage are no longer in France“, Guillaume Lucchini, founder of the Paris-based asset management company Scala Patrimoine, told the newspaper, adding that the outflow of funds from the country is only accelerating.
According to the Financial Times, such investments are “just one of the side effects“ of the political instability in France; some wealthy French families are even moving abroad. Previously, the French government, led by the reappointed Prime Minister Sébastien Le Corneille, survived two no-confidence votes brought by both the right-wing and left-wing opposition.
Le Corneille was reappointed as Prime Minister of France on October 10, after resigning on October 6 after just 27 days in office. After his reappointment, he announced plans to form a "freer" government, independent of political parties. He said he had agreed to lead the French government again after being assured that he would be given freedom of action. The new cabinet was formed on 12 October.