France's New Infrastructure Taxes Hit Airport and Motorway Operators

Shares in three major French infrastructure operators fell after the French government proposed higher taxes on transport infrastructure. ADP, which runs Paris's main airports, dropped 4% on the news. Vinci and Eiffage, both of which operate toll motorways in France as well as airport assets, also declined after the government said it plans to raise taxes on motorways and airports. The proposal is part of France's broader effort to raise revenue and narrow its budget deficit. Because these companies run infrastructure under long-term concessions granted by the state, they are unusually exposed to changes in French tax policy that other companies can more easily avoid by shifting operations elsewhere. What is still unsettled is the size of the tax increase and whether it survives France's legislative process, which has repeatedly stalled or watered down budget measures in recent years.