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“Concrete, quick and effective” measures to increase the purchasing power of the French.
Monitoring of energy prices, revaluation of social assistance, food stamps… Here are the main measures of the bill for the purchasing power from the government.
First major project of the new government, the purchasing power law is already causing unrest in the banks†semicircle. The Prime Minister, Elisabeth Borne, claims to present “concrete, rapid and effective” measures to fight inflation. The project will be discussed in the National Assembly from 18 July. And the relative majority at the disposal of the executive could force it to make some concessions.
† Dealing with rising energy prices
Gas prices will remain regulated until December 31, 2022. Electricity price increases will be limited to 4%. This measure is valued by the management at 14 billion euros for the year 2022. Since 1 . presenter April 2022, the 18 cent discount at the pump will be extended beyond July 31. It should be maintained until August 31, and probably longer, if we are to believe the intentions of the Economy Minister, Bruno Le Maire, who wants it to remain in effect until the end of the year: reduced to 16, 12, 10, we will do it very gradually, but at the end of the year there will be no more fuel discounts, and from the 1er October, in any case, this is the proposal we are making, we are introducing a fuel surcharge for employees. In France Inter’s microphone, the latter also mentioned a new aid measure called “fuel surcharge for employees”, which would cover French people who were forced to use their vehicle to get to work, regardless of the distance traveled, but subject to resource conditions. To this is added a “big rollers” bonus. For the benefit of persons who travel more than 12,000 kilometers per year. According to the latest statements by the minister, this measure would come into effect on 1 October.
On the other hand, the ceiling of the tax-free premium paid by the employer for individual transport increases. This will be increased from 200 to 400 euros and will be combined with the payment of mandatory public transport subscriptions.
📹 In terms of prices at the pump, the only effective, quick, immediate measure that benefits everyone is the reduction in VAT from 20% to 5.5% on fuel: we will defend that in the National Assembly. @RTLFrance pic.twitter.com/gd8DCJyv2b
—Marine Le Pen (@MLP_official) July 7, 2022
† Cascading upgrades to ease everyday life
The old age and disability pensions will be increased by 4%. As a reminder, they were already up 1% in January. The PLA is expected to increase by 3.5%. At the same time, the government plans to limit the rent increase to 3.5% from October 15 for a period of one year. Will be affected by a 4% increase: the RSA, the disability allowance for adults and the solidarity allowance for the elderly. This little perk will only take effect in August with retroactive effect to 1er July.
At the microphone of RTL, Marine Le Pen calls on the government to go further, because “this does not cover the losses recorded over the past five years and which will be absorbed there by inflation”.
† A little bit of butter in the spinach thanks to the food control.
This is just an announcement effect. The food check had already been called under the previous five-year term. This “emergency food aid”, in the words of Olivia Grégoire, former government spokesman, on June 29, will be destined for nine million French households. The families involved receive 100 euros and an extra envelope of 50 euros per child. It is not going through for the opposition: “Do the French want to live on alms? Do we want to live on donations, government support, the little vouchers they give us, passes, cheques? François Ruffin protested against LCI.
People don’t want to live on mites, they don’t give alms: they want to be able to live with dignity from their work. The government should index wages to inflation. He prefers to hand out checks and small vouchers. pic.twitter.com/wtxoQbytA9
— François Ruffin (@Francois_Ruffin) July 7, 2022
† A Macron Prime multiplied by three
The ceiling of the Macron bonus is tripled. This exceptional bonus to boost purchasing power, tax-free and desocialized, allows companies to pay up to 3,000 euros to their employees. Insufficient for the new popular Ecological and Social Union (Nupes) which in its counterproject will present a measure aimed at wage increases.
† A breath of fresh air for the self-employed
They are not forgotten by the bill. Self-employed people will see their expenses fall. Self-employed contributions are revised downwards to ensure greater fairness over employee contributions. This measure should make it possible for benefit recipients to earn 550 euros more per year at the level of the minimum wage.
† End blow to royalty
You will not pay a traditional audiovisual license fee this year. This abolition will take effect from the autumn of 2022. A loss of three billion euros for the state treasury. However, according to the executive, this measure should not affect the budget for the audiovisual public service.