The economy today
Elisabeth Borne in search of compromise
Audio 04:27
French Prime Minister Elisabeth Born addresses the National Assembly on July 6.
AP - Christophe Ena
By: Dominique Baillard Follow
3 mins
In her general policy speech, Prime Minister Elisabeth Borne presented the main lines of her economic program yesterday.
A program in line with President Macron's commitments and in line with the international situation.
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To guarantee the "sovereignty of France in the face of the consequences of the war" in Ukraine, explained Elisabeth Borne, the State will renationalise EDF 100%.
This is the main announcement that we remember this morning.
A symbolic project: the State already controls 85% of the capital.
And above all a long-awaited project.
The president had mentioned it during the campaign.
And the left parties allied in the Nupes are in favor of it.
A significant advantage for a government without a majority.
It is also in tune with the times: faced with the energy crisis, States tend to take control of the management of the energy sector.
Germany, for example, is in the process of legislating to partially nationalize Uniper, the first Russian gas supplier, exhausted by the drop in deliveries.
EDF is also a company in great financial difficulty,
An over-indebted company, with a collapsing stock market valuation.
The state must therefore intervene.
On the one hand to support the national nuclear flagship which must build new power plants, and on the other hand to be more agile in steering the ecological transition.
The climate is one of the priorities put forward by Elisabeth Borne.
She promised "radical responses to the ecological emergency", whether "in our way of producing, of housing, of moving, of consuming".
Very strong words.
But a little hollow.
Without concrete measures announced, apart from the rental of electric cars at less than 100 euros per month.
This proposal flatters the purchasing power of the French people but is not in itself a plan for the paradigm shift implied by the energy transition.
The Prime Minister also remained very vague on the financing of her program
Indeed she confirmed the promises of the president: the abolition of the audiovisual license fee for individuals and of a production tax for companies.
Without specifying how to finance this shortfall of 11 billion euros.
No lead either on the financing of the green revolution.
The Prime Minister insists on the need to keep the accounts, without detailing the means to achieve this.
For obvious political reasons.
Always this absence of absolute majority in the assembly;
difficult with this uncertain context to outline the main lines of the next budget.
Regarding purchasing power, Elisabeth Borne favors the gentle way by calling on companies "that can" to increase wages.
The purchasing power defense measures will be presented today,
having them adopted at the assembly will be a first test for Elisabeth Borne's team.
We will see if the convergences she called for yesterday are possible on a priority subject for the French.
On the pension reform, Elisabeth Borne assumes, with caution
The certainty is that this reform will have to be done: “our country needs it” she underlined.
Without giving a single clue about the content of this reform.
We do not know if his government intends to raise the retirement age - President Macron had proposed a departure at 65 and then at 64 between the two rounds - or if the balance tips in favor of an extension of the contribution period.
On such an explosive subject, there is not even a timetable.
For pensions as for the whole of its program the government will especially have to take care of its method.
Elisabeth Borne is working on it.
She says she wants to seek compromise.
With local elected officials and social partners, actors neglected during the first five-year term.
►In short
Commodity markets have fallen 20% since June.
This is what the Bloomberg index tells us, which aggregates 23 products, ranging from energy to metals and agricultural commodities.
This sudden decline reflects fears of recession.
This easing will reactivate demand, which could relaunch the rise in prices in a context of still very tight supply.
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Elisabeth Borne