France unveils measures to boost household purchasing power

Jul 7, 2022, 11:29 AM | Updated: 12:05 pm

The National Assembly is pictured as French Prime Minister Elisabeth Borne delivers a speech in Par...

The National Assembly is pictured as French Prime Minister Elisabeth Borne delivers a speech in Paris, France, Wednesday, July 6, 2022. Borne lay out her main priorities at parliament after the government lost its straight majority in the National Assembly in elections last month. (AP Photo/Christophe Ena)

(AP Photo/Christophe Ena)

PARIS (AP) — The French government unveiled Thursday a 20 billion-euro ($20.3-billion) package of measures meant to help struggling households cope with the consequences of the war in Ukraine, including rising energy and food prices.

The proposed legislation was presented at a Cabinet meeting Thursday, a day after French Prime Minister Elisabeth Borne detailed the government’s economic strategy in parliament.

The measures will be debated at parliament later this month and are seen as a crucial test for the government’s ability to govern.

President Emmanuel Macron’s centrist alliance won the most seats at the National Assembly in elections last month, but lost its straight majority — while a leftist coalition and the far-right made big gains, becoming strong opposition forces. The government offered to make compromises on a case-by-case basis with other political forces to avoid legislative deadlock.

The government’s move comes as annual inflation reached a record 8.6% for the 19 countries using the euro, swollen by a huge increase in food and energy costs fueled partly by the war in Ukraine.

In France, annual inflation is estimated to 6,5%, among the lowest in the eurozone.

“The cause of the inflation is not to be looked for in a French structural economic problem, but in the Ukrainian conflict,” government spokesperson Olivier Veran said. “No way will we let the French worry about not being able to pay for their shopping like they used to do.”

The measures include increasing pensions, which will give people on the basic state pension an additional 62 euros ($63) per month, Veran said.

A series of welfare payments will also increase by 4%. Finance Minister Bruno Le Maire said family benefits will be included, which “is fair, because families with children are the most impacted by food price rises. When you have three or four mouths to feed, it’s necessarily expensive.”

Civil servants will see their salaries rise 3.5%.

“Today, what is penalizing the most the daily life of our fellow citizens? Housing, fuel and food. On these three items, we’re bringing three massive, efficient responses,” Le Maire said.

Rent increases will be capped this year at a maximum 3,5%.

Regarding fuel, a current rebate of 18 cents per liter will be replaced by a check from 100 to 200 euros ($101 to 203) for low and middle income workers who need to use their car, which represents about 12 million households.

In addition, 9 million poorer families will receive a check of 100 euros and an additional 50 euros per child to buy food, Le Maire said.

The government also plans to maintain a current cap on electricity prices and a gas price freeze until the end of the year.

Private companies which make profits are also encouraged to offer their employees an annual bonus of up to 6,000 euros ($6,092) that’s tax-free for employees and tax-deductible for employers — in line with a campaign promise from Macron, who was reelected in April.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

(Mike Stocker/South Florida Sun-Sentinel via AP)Credit: ASSOCIATED PRESS...

Associated Press

Florida police search for 3 gunmen who wounded 9 at crowded beach on Memorial Day

Police are responding to a shooting near the beach broadwalk in Hollywood, Florida.

2 days ago

Crew members assemble the main stage ahead of the 2023 Scripps Nations Spelling Bee on Sunday, May ...

Associated Press

Exclusive secrets of the National Spelling Bee: Picking the words to identify a champion

As the final pre-competition meeting of the Scripps National Spelling Bee's word selection panel stretches into its seventh hour, the pronouncers no longer seem to care.

2 days ago

FILE - Gabby Petito's mother Nichole Schmidt, wipes a tear from her face during a news conference o...

Associated Press

Mother of man who killed Gabby Petito said in letter she would help son ‘dispose of a body’

The mother of the man who killed Gabby Petito told her son in an undated letter that she would “dispose of a body” if needed because she loved him so much, according to copies of the note shared publicly for the first time this week by attorneys for Petito's parents.

5 days ago

A member of the 3rd U.S. Infantry Regiment, also known as The Old Guard, places flags in front of e...

Associated Press

5 things to know about Memorial Day including its controversies

Memorial Day is supposed to be about mourning the nation’s fallen service members, but it’s come to anchor the unofficial start of summer and a long weekend of discounts on anything from mattresses to lawn mowers.

5 days ago

FILE - This artist sketch depicts the trial of Oath Keepers leader Stewart Rhodes, left, as he test...

Associated Press

Officers describe chaos, fear on Jan. 6 as judge weighs prison time for Oath Keepers’ Rhodes

Police officers who defended the U.S. Capitol on Jan. 6, 2021, and public servants who fled the mob's attack told a judge on Wednesday that they are still haunted by what they endured, as the judge prepares to hand down sentences in a landmark Capitol riot case.

6 days ago

Pride month merchandise is displayed at the front of a Target store in Hackensack, N.J., Wednesday,...

Associated Press

Target on the defensive after removing LGBTQ+-themed products

Target once distinguished itself as being boldly supportive of the LGBTQ+ community.

7 days ago

Sponsored Articles

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Here are the biggest tips to keep your AC bill low this summer

PHOENIX — In Arizona during the summer, having a working air conditioning unit is not just a pleasure, but a necessity. No one wants to walk from their sweltering car just to continue to be hot in their home. As the triple digits hit around the Valley and are here to stay, your AC bill […]

...

OCD & Anxiety Treatment Center

5 mental health myths you didn’t know were made up

Helping individuals understand mental health diagnoses like obsessive compulsive spectrum disorder or generalized anxiety disorder isn’t always an easy undertaking. After all, our society tends to spread misconceptions about mental health like wildfire. This is why being mindful about how we talk about mental health is so important. We can either perpetuate misinformation about already […]

...

Desert Institute for Spine Care

Spinal fusion surgery has come a long way, despite misconceptions

As Dr. Justin Field of the Desert Institute for Spine Care explained, “we've come a long way over the last couple of decades.”

France unveils measures to boost household purchasing power