PURCHASING POWER LAW. At the end of the first Council of Ministers of the Borne era, government spokeswoman Olivia Grégoire announced that the adoption of the purchasing power bill would take place even before the legislative elections.
[Mis à jour le 23 mai 2022 à 14h43] This Monday, May 23, 2022, was held the very first Council of Ministers of the Elisabeth Borne era. At the center of all attention was the bill in favor of the purchasing power of the French. For now, discussions are going well to try to know the measures that will be implemented in the coming weeks, as well as their date of entry into force. The flagship measures of the project such as the Macron bonus or the extension of the tariff shield were discussed, among others. And new government spokeswoman Olivia Grégoire said the purchasing power bill “should be adopted by the Council of Ministers before the legislative elections scheduled for June 12 and 19“.
This Monday, May 23, the Minister of the Economy Bruno Le Maire also received in Bercy the representatives of the large distribution, the MEDEF or the CPME on one of the burning themes of this beginning of the second five-year term of Emmanuel Macron: inflation! Measured at 4.8% in April over one year, it should not fall next month. INSEE forecasts an increase in May 2022 (5.4% over twelve rolling months). At the end of the legislative elections on 12th and 19th June next, the official announcement of the bill on purchasing power is extremely awaited with in particular the indexation of pensions to inflation, the introduction of a check food or the extension of the discount fuel and the tariff shield. Bruno Le Maire should now ask companies to make a major effort, in return for some 20 billion additional euros invested by the State within the framework of this purchasing power bill. The Bercy tenant hopes in particular for an increase in wages from employers. But with the rise in the price of energy and raw materials, in particular, some companies may not be able to participate sufficiently in this effort. The discussions promise to be long and delicate in an attempt to find common ground in the coming weeks.
The President of the Republic Emmanuel Macron has promised the implementation of a law aimed at protecting the purchasing power of French households in the face of inflation and the increase in energy, fuel and food products. In April 2022, consumer prices rose by 4.8% over one year and the trend should worsen next month with projections around 5.4% from INSEE. This amending finance bill (PLFR) should be carried by the brand new Prime Minister Elisabeth Borne, and presented in the wake of the legislative elections, as announced by government spokesperson Gabriel Attal at the end of the Council of ministers of May 11. Food voucher, extension of the tariff shield and the fuel bonus, indexation of pensions on inflation… There is no shortage of proposals, but the promulgation of this law should still be pending.
Why ? Quite simply because the new National Assembly has not yet been formed. For the moment, this project remains to be taken with tweezers. It is totally suspended on the results of the legislative elections next June. Indeed, the slew of measures promised by Emmanuel Macron and his government remains subject to the dynamics that will emerge from the ballot. The Republic En Marche and its rally “Together!” will she get the majority? This is the main question. If this is not the case, the project could be widely called into question, or even completely abandoned. In the event of cohabitation, it could be difficult for the Head of State to impose this project on his Prime Minister and to have it voted on by a divided assembly. Answer on June 19 during the second round of the legislative elections.
The rise in consumer prices is expected to continue in the coming months. INSEE predicts an increase between 5% and 5.4% next May, enough to push the government to act, by proposing a salvo of measures to try to support modest households and low wages. In this sense, several proposals already mentioned by the executive for many weeks should indeed come into force. Here they are :
- Food voucher: its amount could reach 60 euros and should benefit young people aged 18 to 25, as well as low-income families with children. The measure could affect 8 million people in France with the aim of allowing low wages to consume French, organic, and preferably in short circuits.
- Macron bonus: the Head of State intends to triple the amount of the exceptional purchasing power bonus to reach up to 6,000 euros in certain cases. It concerns employees whose salary does not exceed 3x the minimum wage.
- RSA: the active solidarity income should be conditional on a minimum of activity on the part of the beneficiaries. The most likely track remains 20 hours of training per month. A way for the executive to promote the return to employment.
- TV fee: it was a campaign promise the audiovisual fee will be abolished in 2022. Its amount was 138 euros in mainland France and 88 euros in Overseas for each household with a television.
- Indexation of pensions to inflation: In addition to the introduction of a minimum pension of 1,100 euros, Emmanuel Macron wishes to index retirement pensions to the level of inflation to take into account the sharp rise in prices which should be durable.
- Fuel bonus: the government could extend the discount of 18 cents on a liter of fuel, and even set up new, more targeted aid for those who have no choice but to use their vehicle to get to their workplace.
As announced by the spokesperson for the current government Gabriel Attalthe various measures forming part of the purchasing power law should be announced “after the legislative elections“. A way of respecting the timetable set by Emmanuel Macron and his various media releases, regularly announcing the implementation of these measures by the summer.