The government presents on Thursday a package of measures for purchasing power of around 25 billion euros supposed to mitigate the effects of inflation on households, a project announced for weeks but suspended until the legislative elections and then the reshuffle, and which will be a first major test for the executive in the Assembly.

Food voucher of 100 euros and an additional 50 euros per child, fuel discount of 18 cents and energy tariff shield extended, revaluation of pensions, social minima and civil servants' remuneration, Macron bonus, abolition of the TV license fee, etc. .

: the government plans to act in all directions, after more than 25 billion euros have already been spent since the end of 2021, in particular to compensate for the rise in energy prices.

4% increase in pensions and social minima

Emmanuel Macron met again on Tuesday morning at the Elysée Palace with Prime Minister Elisabeth Borne and several ministers to finalize the executive's strategy on the number one concern of the French, with inflation which again reached 5.8% in June, never before. seen for nearly 40 years.

Concretely, two texts will be presented Thursday in the Council of Ministers: a draft amending budget for 2022 in order to finance the aid promised, and a purchasing power law including in particular the revaluations of 4% of pensions and social minima, which require a text dedicated.

A set of measures of around 25 billion euros, indicated last week the Minister of Economy Bruno Le Maire, defending the need to “protect” the French.

The amended draft budget will also endorse Bercy's new economic forecasts: growth now expected at 2.5% this year and a deficit that could be reduced to 5% of GDP, thanks to additional revenue.

The first real test for the government

Beyond the measures, and the day after the Prime Minister's general policy speech, this purchasing power package will be the first real test for the government in the Assembly, where the presidential camp only has a majority. relative.

In particular to the Finance Committee, now chaired by Eric Coquerel, deputy La France insoumise.

The executive expects to have to scrap in the face of opposition which accuses it of not doing enough, in particular on fuel prices.

On Monday, the Republicans listed their three priorities: lowering taxes to lower the price of fuel to 1.50 euros/litre, canceling the increase in the CSG for retirees and reducing charges to increase net wages.

The PCF and LFI, allies within Nupes, are already promising each a bill on purchasing power.

“Targeted and temporary measures”?

By welcoming the new ministers to Bercy on Monday, Bruno Le Maire expressed the wish that Parliament be the place of "compromise" and "not one-upmanship", recalling the constrained framework of public finances.

Last week he tackled the LR proposal on fuels, estimating that it would cost 50 billion euros.

"We are approaching this debate in a very open way," said Minister of Public Accounts Gabriel Attal on RTL on Tuesday morning, assuring that the government "is ready to compromise with the opposition" who wish to move forward in this direction.

But he defended the budgetary "framework" defined by Bercy.

Bruno Le Maire notably mentioned a new allowance for motorists who use their car to work or a new extension of the fuel discount until the end of the year.

expenses to finance

During the examination of the text in the Assembly, the expenses proposed by amendment must be pledged, that is to say financed, so as not to be deemed inadmissible.

The oppositions will therefore have to say how they finance their fuel tax cuts, we warn at Bercy.

A message of caution echoing the fears expressed Monday by the first president of the Court of Auditors Pierre Moscovici.

“I don't believe in 'whatever the cost inflation'.

That we take targeted and temporary measures, I say yes.

Permanent measures and for everyone, it would seem reckless to me, ”he said.

Once presented to the Council of Ministers, the two texts will be examined from July 18 in the Assembly, then by the Senate.

Economy

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Policy

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  • Economy

  • purchasing power

  • Consumption

  • Budget

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