The economy today
The result of the legislative calls into question the reforms of President Macron
Audio 03:09
French President Emmanuel Macron during the vote in the second round of the legislative elections.
AP - Michel Spinler
By: Dominique Baillard Follow
3 mins
In the absence of an absolute presidential majority, has France become ungovernable?
The first test for Emmanuel Macron will be the law on purchasing power.
This priority issue for the French was to be voted on this summer by Parliament.
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The war at the gates of Europe has awakened inflation, it is now at 5.2% and everything indicates that it will last and weigh on the portfolios of the French.
The subject has emerged since the presidential campaign, all parties have taken up the subject.
The president has promised to act as soon as possible to protect the purchasing power of households.
His project will be presented to the Council of Ministers within 15 days.
It includes the energy shield, the rebate of 18 cents on fuel maintained at least during the summer holidays and the blocking of the price of gas, the revaluation of social minima, the abolition of the audiovisual license fee, a food check for households modest.
On wages, the government triples the Macron bonus, bringing it to 6,000 euros.
The Nupes and the RN, which appear to be the big winners of the ballot, also want to protect purchasing power
But with proposals very far from that of the presidential camp.
The Nupes, with its Robin Hood program, is much more radical, it provides for the blocking of prices and the minimum wage at 1,500 euros.
The Rassemblement National advocates the reduction of VAT.
The Republicans, who could be approached by Together!, want them to reduce fuel taxes.
Finding a majority to adopt this package this summer as initially planned seems very complicated at this time.
But failing seems just as unthinkable as the expectations of the French are high on this issue.
Note that the budget equation makes the vote even more difficult.
You have to spend more when interest rates rise.
This Monday morning the party of
Another reform that seems off to a bad start: that of pensions
She was to be examined in the fall.
There too the projects are irreconcilable.
The president wanted to delay the retirement age, which is now 62 years old, the Nupes like the National Rally refuses this option, on the contrary they advocate the right to retire at 60, while the Republicans are campaigning for retirement at age 65.
The Together!
will have to amend its project to find a majority.
And to prevent the opposition from overflowing into the streets.
The voters who largely abstained from going to vote in the legislative elections do not think less of it and could let their anger explode.
With the support of the unions, including the CFDT, disappointed by the new reform proposed by the president, it withdrew its support.
Other reforms risk suffering from this unobtainable majority.
That of health, school, and of course the energy transition.
Issues just as urgent as that of purchasing power.
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France
French legislative 2022
Emmanuel Macron