From Brexit to the Yellow Vests Movement in France

In the wake of the subprime crisis, the political risk was kept in check in the short term, but the impoverishment that resulted from this crisis would propel this risk on high over the medium term. Brexit is the first major victory of populism fueled by rising inequality in Europe post-war. Emmanuel Macron started his presidency by abolishing the solidarity wealth tax and by introducing a 30% flat-rate tax on capital income, which covered both income tax and social security contributions. These first measures are perceived by the French population as the new government prioritizing the rich. The same fiscal law increased the taxation of households. First, there was a 1.7% increase in the generalized social contribution. Second, there was an increase in fuel taxes, particularly on diesel, when previous governments had encouraged purchases of diesel cars by offering tax incentives. This measure crystallized the discontent of those who would later become the Yellow Vests. The Yellow Vests Movement erupted on November 17, 2018, when 300 thousand protesters clad in high-visibility safety vests occupied roundabouts. The total cost of the measures announced by Emmanuel Macron in response to the Yellow Vests movement amounted to €17 billion.