Purchasing power: between Macron and Le Pen, which proposed measure is the most effective?

Maud Descamps edited by Laura Laplaud 07:15, April 22, 2022

If we look at the figures, what is the measure of the two presidential candidates, Emmanuel Macron and Marine Le Pen, the most effective in terms of purchasing power?

The outgoing president assured him on Wednesday evening, during the debate between the two rounds, the tariff shield, that is to say a price freeze, is much more effective than the solution of his rival, who wants lower VAT from 20% to 5.5% on gas, electricity and fuel oil

"Companies have no obligation to apply this reduction in VAT in their prices"

But whether it's freezing energy prices or lowering VAT, these two proposals have the same limit: they benefit all French people, including those who a priori have no problem purchasing power.  

The reduction in VAT has an additional limit, it is contrary to a European directive because it cannot be applied to fuels.

Even if France decides to apply this reduction – which would represent around 15 billion euros – there is no guarantee that it will be passed on to selling prices, warns economist Sylvain Bersinger.

"The problem with the reduction in VAT is that companies have no obligation to pass on this reduction in VAT in their prices", he specifies.

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"For example, the reduction in VAT on catering in 2009 was only passed on to 10% in prices. The price shield, by definition, freezes prices and therefore there is indeed a power gain in direct purchase for the French since prices stop rising," says the economist.

If the tariff shield indeed allows a reduction directly passed on to prices, the experts nevertheless believe that there is nothing to confirm that it is twice as effective as a reduction in taxation.