The long-awaited bill on purchasing power is presented on Thursday July 7 in the Council of Ministers. It is supposed to help households cope with inflation which again reached 5.8% in June, the highest level for nearly 40 years.
From food to fuel, the government will present a package consisting of several measures, some of which have already leaked to the press. The government intends to propose an increase in pensions, social minima and the remuneration of civil servants as well as the establishment of a housing shield which limits the rise in rents. For the most modest, an emergency food check of 100 euros per household and 50 euros per child has already been decided. This amount will be paid at the start of the school year.
The government also plans to extend the fuel discount of 18 euro cents until the end of the year and proposes to introduce a new allowance for all those who are obliged to use their car to go to work, and this, under income condition.
” These are measures that moderate inflation, those that have already been put in place have made it possible to moderate the inflationary movement, even if inflation is high in France, it is still lower than in other countries “Said Sandra Hoiban, director general of the Research Center for the Study and Observation of Living Conditions (Credoc).
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Measures financed thanks to a surplus of receipts
These new support measures for the French should cost around 25 billion euros. In total, 50 billion if we add the 25 billion already committed since October, in particular to compensate for the rise in energy prices. To finance them, the executive is counting on a surplus of revenue of around 55 billion euros compared to what was expected this year. ” These are very costly measures and the government will have little leeway to finance its other priorities such as the energy transition, the healthcare system, the education system, etc. underlines Hippolyte d’Albis, president of the Circle of economists.
The situation is therefore complicated for the government, which is facing a rise in interest rates for government bonds and weaker growth than expected, 2.5% instead of the expected 4%. Beyond the figures, the first real test for the government will be July 18, the day when the text will be examined by the deputies.
The opposition, which accuses the executive of not doing enough, in particular on fuel prices, does not intend to make its task easier. The Republicans have already proposed their priorities: lower taxes to lower the price of fuel to 1.50 euros/litre, cancellation of the increase in the CSG for retirees and reductions in charges to increase net salaries. The PCF and LFI have each promised a bill on purchasing power.
For example, in the banking sector, there are between 3 and 4 billion euros that could be returned to consumers if we regulated bank charges, which are significantly higher in France than abroad. Supermarket prices could also be regulated. Today, there is a law – which is really incredible – which obliges distributors to achieve a minimum of 10% margin on products. It is clear that today the item that is burning the most with that of energy is the food item.
Antoine Autier (UFC Que Choisir): “There are plenty of expenses where the public authorities can do something”
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