The bill presented to the National Assembly on Monday contains a series of measures to support households hit by inflation. Le Figaro make the point.
20 billion euros forcontinue to protect the French»: the government is doing its utmost to deal with soaring inflation, which reached 5.8% over one year in June. This Monday, the bill in favor of purchasing power arrives before the National Assembly. The 20-article bill “laying down emergency measures for the protection of purchasing power”passes first reading until Thursday, with more than a thousand amendments to the key. MEPs will continue with the examination of the draft amending budget for 2022. Le Figaro sums up this “purchasing power” package for you, divided between several texts and decrees.
Overall, the overall cost of the measures is estimated, for 2022, at 20 billion euros. The executive expects a limited effect on public finances, assuming that this additional spending will be offset by rising revenues by the end of the year. “The package is fully funded“, we assure the government. Published on July 7, an opinion from the High Council of Public Finances was more doubtful…
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While INSEE is counting on a decline in household purchasing power of 1.5% this year, the executive considers that all the measures put on the table for several months will make it possible to reverse the trend by making “increase purchasing power by 0.5% per consumption unit“. Either a leap of “3 points more purchasing power compared to a situation without government action“.
The executive says it remains open to proposals from the opposition to amend the texts. “Are we ready to move? Generally yes“said government spokesman Olivier Véran on France 2 Monday morning. The majority has already sent a signal to the Republicans, by taking up one of their proposals on raising the tax exemption ceiling for overtime. Voted in committee, it must now be voted again in the hemicycle.
Energy: extension of the tariff shield
Put in place last October, the shield on gas and electricity prices will be extended until the end of the year. Without him, the gas bill could have jumped 50% in July compared to October, and that of electricity by 35%. This year, this measure should cost 14.5 billion euros, according to Bercy. “There will be no catch-up in 2023“, added Bruno Le Maire on RTL Monday morning.
SEE ALSO – Purchasing power: the energy shield maintained until the end of 2022
Fuels: an extended discount and a measure for workers
While prices at the pump have soared, the executive will extend the discount from fifteen to eighteen cents per liter until the end of September. It will then gradually die out, dropping to twelve centimes in October, six in November, before disappearing on December 1.
At the same time, the government is proposing the creation of a “fuel allowance” for workers. It concerns employees, apprentices, public or self-employed agents and will be paid subject to means testing. The first five deciles are eligible, i.e. eleven million people: it amounts to 200 euros for deciles 1 to 3, i.e. declaring a reference tax income of less than 8400 euros per unit, and 100 euros for people declaring a taxable income between 9,400 and 14,100 euros.
A bonus is granted to big rollers, who “live more than 30 kilometers from their place of work or travel more than 12,000 kilometers per year for work»: it reaches 100 euros for the first three deciles and 50 euros for the next two. In total, the check can therefore reach up to 300 euros.
The indemnity may be paid in one go,from octoberhopes the government: you will have to request it online on the DGFIP website to receive it directly in your bank account. “We trust the French“said Franck Riester on France Inter Monday morning. But “there will be checks that will be made, so that there are no fraudstersadded the Minister Delegate in charge of Relations with Parliament.
SEE ALSO – Purchasing power: the fuel discount replaced by aworker’s compensation»
Housing: arent shield” put in place
Two main measures relate to housing. First, as previously announced, the benchmark rent index, which is used to calculate rent increases, will be capped for one year at 3.5% between October 1, 2022 and October 1, 2023. Rent increases cannot exceed this figure. The executive hopes that landlords will contribute to the collective effort, avoiding increasing rents to the level of the maximum indicated.
Then, the personalized housing aid will be revalued by the same level, on July 1, in anticipation of the increases planned for next October and January. 5.8 million households will be affected, including 800,000 students, for a total cost of 169 million euros.
Revaluation of pensions, social minima, family benefits
The executive wishes to review the schedule of increases in social benefits and pensions, which take place, in principle, in January or April. “The very sharp rise in prices observed since the beginning of the year justifies anticipating this annual revaluation as of now.“, we estimate.
In concrete terms, this means that social rights and benefits will increase by 4% from July. This particularly concerns retirees, beneficiaries of the RSA, the AAH, a disability pension, the minimum old age or beneficiaries of family benefits.
A “exceptional help» back to school
The “food checkloses its name but not its substance. The executive thus wants to vote for a “exceptional help» in the amount of 100 euros, to which would be added 50 euros per dependent child. Automatically paid in September, it would concern 8 million low-income households benefiting from social minima such as the RSA or the AAH and scholarship students.
This device envisaged by the citizen’s convention for the climate was taken up but largely modulated by the government. Supposed to provide access to healthy food for low-income families, it has constantly been pushed back before adopting its current form: that of occasional aid.
The index point of civil servants raised
As announced for several weeks, the government plans to thaw the index point for civil servants, which will increase by 3.5% from July 1. This index had not been revalued since 2016.
For the State, this measure represents a cost of 7.47 billion euros. It will concern the civil and military personnel of the State, the magistrates, the personnel of the territorial collectivities and the agents of the public hospital service. By way of example, a peacekeeper with fifteen years of seniority will earn 822 euros more per year, against 744 euros for a school teacher with seven years of seniority, according to the figures of the authorities.
SEE ALSO – Purchasing power: civil servants increased by 3.5%, announces Olivier Véran
There “Macron premium» renewed and strengthened
Companies will be free to pay a premium exempt from social security contributions (known asMacron premium”) for a maximum amount of 3,000 euros, or even 6,000 euros if the company has a profit-sharing plan.
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This bonus will also be exempt from CSG-CRDS and income tax until the end of 2023, if it is paid to employees earning less than three times the minimum wage. This time limit was set following discussions with the Council of State, to avoid seeing it replace salary increases, it is said.
Several million French people are potentially concerned: 8.3 billion euros ofMacron bonus“have been paid since 2019 to 15.3 million workers, for an average amount of 542 euros, according to the government.
An early revaluation of the activity bonus
The government also wants to increase the amount of the activity bonus, which would benefit from a 4% increase from July 2022. This had already increased by 1.8% last April. This measure will benefit 4.5 million households and will cost 280 million euros.
Lower social security contributions for the self-employed
The government wants to reduce the contributions weighing on the self-employed earning a net activity income close to the minimum wage. The reduction will be effective “from the end of the yearand will cost 500 million euros per year.
Incentive: measures for workers
The Purchasing Power bill proposes to strengthen profit-sharing to improve the sharing of value. Two measures have been put forward: extending the maximum duration of agreements from three to five years and allowing small businesses with fewer than fifty employees to unilaterally set up a profit-sharing agreement, in the event of failure of negotiations or in the absence of staff representatives.
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Specific decisions for students
In addition to the revaluation of the APL and the food voucher, the students will be able to benefit from a revaluation of 4% of the grants awarded on social criteria. This will be ratified by a decree and financed by appropriations opened in the finance law. In addition, the 1 euro meal plan will be maintained throughout the 2022-2023 academic year.
SEE ALSO – Purchasing power: student grants increased by 4%
The abolition of the audiovisual license fee confirmed
Announced by Emmanuel Macron during the presidential campaign, the audiovisual license fee will be abolished this year. This measure concerns 23 million households: it will represent an annual saving of 138 euros per household in mainland France and 88 euros overseas. Professionals are also affected by this development. Please note that the amounts already withdrawn for 2022 will be reimbursed. The government promises to ensure the financing of public audiovisual companies. “The budget planned for 2022 for public broadcasting will be kept“, indeed repeated Franck Riester Monday morning, assuring that the means of the public audiovisual were going to be”perpetuated“.
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Allow easy unsubscription to online services
Expenses “pre-committed» of which subscriptions are a part weigh more and more heavily in the budget of the French (going from 27% to 32% of expenditure between 2001 and 2017 according to France Strategies). The government now wants to make it easier to unsubscribe from online services – telephony, internet, press… If this measure is passed, all these services will have to be able to be canceled via a “easy and direct access terminationonline, starting in early 2023.
At the same time, the government wants to strengthen the sanctions against scams and “aggressive business practices”, concerning for example the personal training account or thermal renovation services, which are often the subject of this type of practice.
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