93% of French Regions at Risk as Wine Tax Debate Intensifies Amid Industry Crisis

As France enters the autumn season, the debate over increasing taxes on wine has resurfaced in the context of the first draft of the 2026 Social Security Financing Bill. Several amendments have been proposed in the National Assembly’s Social Affairs Committee, aiming to extend social security contributions to all alcoholic beverages, tax alcohol advertising, and index alcohol taxes to inflation. These proposals come at a time when the French wine industry is facing a significant crisis, with declining consumption and economic challenges affecting producers across the country.

Samuel Montgermont, president of Vin & Société, an organization representing the French wine sector, expressed concern over the recurring nature of these fiscal amendments. He noted that such measures are not initiated by the government itself but are regularly introduced by certain parliamentary groups, particularly from the left and environmentalist parties. Montgermont criticized what he described as a lack of awareness among some lawmakers about the current difficulties facing the wine industry, especially in light of recent trade issues with China affecting cognac producers and a broader crisis impacting vineyards nationwide.

Montgermont argued that increasing taxes on wine would have a massive impact on the economy without effectively addressing excessive drinking behaviors. He pointed out that wine consumption in France has become largely occasional, with most French people drinking wine in moderation. According to Montgermont, targeting moderate consumption through higher taxes would not achieve public health goals but would instead harm an industry that supports jobs and rural communities in 93 percent of French departments.

The debate over alcohol taxation is taking place against a backdrop of tight public finances in France. While there does not appear to be a parliamentary majority in favor of these new taxes at present, Montgermont warned that the government’s need to find new sources of revenue could make such measures more attractive. He emphasized the importance of vigilance and ongoing dialogue with lawmakers to explain the potential consequences for the wine sector.

Montgermont also addressed the broader public health discussion, noting that the World Health Organization has recently acknowledged the distinction between moderate and excessive alcohol consumption. He called for a focus on combating harmful drinking patterns rather than penalizing moderate consumers or the wine industry as a whole.

On the subject of communicating about wine’s health effects, Montgermont responded to recent calls from some in the medical community to promote the so-called “French paradox”—the idea that moderate wine consumption may have health benefits. He said that it is not the role of industry representatives to make health claims about their products, emphasizing instead the importance of responsible consumption within public health guidelines.

The legal framework governing alcohol advertising in France, particularly the Évin Law, has also come under scrutiny. Some producers argue that current restrictions hinder their ability to promote wine tourism and regional know-how. Montgermont acknowledged that while there have been clarifications allowing for some communication about wine regions, he questioned whether further changes to the law would be effective or desirable, given the financial realities of mass media advertising and changing consumer habits.

At the European level, 23 French regions have signed an appeal from Strasbourg calling for stronger support for Europe’s wine sector. Montgermont stressed the need for coordination and unity among wine-producing countries to ensure their voices are heard in Brussels. He cited recent successes in influencing international policy as evidence that a coordinated approach can yield results.

As the debate continues, Montgermont urged policymakers to consider the real-world impact of fiscal measures on an industry already facing significant challenges. He called on elected officials to engage directly with wine producers and to recognize the importance of the sector to French culture and the rural economy.