Faced with the persistence of inflation, the government is preparing an amending finance law which includes new measures to support purchasing power. The subject must be discussed in the Council of Ministers this Wednesday.
“As of this summer, an exceptional law for purchasing power“. The commitment had been made by Emmanuel Macron during the in-between rounds of the presidential campaign dominated by the question of purchasing power. The site seems more of a priority than ever for the executive, while inflation continued to climb in April to +4.8% year on year. A level not seen since the 1980s, which affects essential expenditure items such as energy or food.
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Faced with this emergency, the Castex government is working on an amending finance bill (PLFR) which should first take up elements of Emmanuel Macron’s presidential program to protect the French budget. The subject must also be discussed in the Council of Ministers this Wednesday. Existing devices such as the blocking of the regulated price of gas and the allowances on gasoline must be extended over time, if the form remains to be defined, their amount could be readjusted with a new envelope.
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New measures still in the boxes
Other measures provided for in this PLFR, the indexation of retirement pensions but also of several social minima on inflation, including the RSA (active solidarity income), the AAS (specific solidarity allowance), the AAH (allowance disabled adult) and the activity bonus. In the context of rising food prices, a food voucher must also be put in place. However, its amount, frequency of payment and the categories of products concerned are not yet known. The Ministry of Agriculture is still defining the future terms of this inflation check.
Bercy expects inflation to persist in the coming months and does not rule out deploying other purchasing power aids. The file is directly managed by Bruno Le Maire. The Minister of Economy and Finance received last week the employers’ organizations (MEDEF, CPME, U2P), economists. This week, the leaders of EDF, Engie, large retailers and consumer associations must be consulted. “Inflation is the major subject to be tackled. New innovative measures could come”we consider on the side of Bercy.
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Their contours are still unclear, as is the timetable for the entry into force of this law. “purchasing power”. The text will have to be validated by the future government whose composition is still awaited. His vote in Parliament can only be made after the election of the new National Assembly after the legislative elections of June 12 and 19, at the earliest at the end of June or the beginning of July.
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