When will the government lift the veil on its purchasing power bill and on the 2022 amending budget that accompanies it? Announced before the legislative elections, then after, then Wednesday July 6, the presentation to the Council of Ministers would finally be for Thursday July 7. What we know, and what needs to be clarified.
Faced with galloping inflation, already a figure of almost 6% over one year by INSEE, the new government is playing big with the bill on emergency measures for the protection of purchasing power. A text expected this week in the Council of Ministers … which was announced for this Wednesday, July 6 but which is now on the agenda for the lyse of Thursday July 7, 4 p.m. MoneyVox was able to consult a provisional version of the purchasing power bill… without all the uncertainties being erased.
Purchasing power bill: 3 key measures for your portfolio
1. Pensions and benefits on the rise. Unsurprisingly, as promised by Prime Minister Elisabeth Borne, the purchasing power bill provides for a 4% increase in basic retirement pensions, from July. Exceptional increase in the sense that it is added to the usual annual revaluation, the last one having taken place last January (+1.1%). The same additional revaluation of 4% appears in this text for the RSA, the activity bonus, the AAH, family allowances, etc.
Activity bonus, Smic, retirement… These increases that you will benefit from and those that are threatened
2. Triple Macron bonus. This is one of the campaign promises of the President of the Republic Emmanuel Macron: to triple the bonus that bears his name. It is not paid by the state but by the employers who wish it, the advantage being its total tax exemption. Today capped at 1,000 euros, this tax-exempt purchasing power premium could rise to 3,000 euros if the bill is adopted as it stands by the Assembly. And even the double (ceiling of 6000euros) in the event of agreement of profit-sharing in the company. In 2021, around 4 million French people benefited from this financial boost from their employer, for an average amount of 506 euros per person.
Retirement, taxes, salary, savings… What Macron promised for your purchasing power 7
3. Profit-sharing agreements facilitated. Surprise: this text on emergency measures for purchasing power ventures into the field of profit-sharing agreements. A subject of purchasing power which does not necessarily appear as a priority but which can turn out to be consensual in a fragmented Assembly. What’s new if this Purchasing Power Bill is successful? As of January 1, 2023, profit-sharing agreements would be concluded for a period of up to 5 years, instead of 3 years. Added to this flagship measure are other relaxations that are supposed to facilitate the implementation of such agreements.
Incentive, participation… The different employee savings schemes
The 3 uncertainties that the government will have to remove
1. Will the TV license fee be abolished in 2022? President-candidate of the last presidential election, Emmanuel Macron has undertaken to abolish the TV license fee, i.e. an annual gain of 138 euros per household equipped with a television. A abolition promised this year, while the contribution to public broadcasting is traditionally paid jointly with the housing tax (being phased out) in November.
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This deletion does not appear in the version of the bill that MoneyVox was able to consult but it is likely that this promise appears on the menu of the amending finance bill for 2022, which will be studied in the crowd, at the end of July, by the Assembly. Problem: this measure is one of those which will find it difficult to achieve consensus within the Hemicycle. Because all the left parties of the (relative) presidential majority are against it. The intersyndicale of France Televisions, Radio France, France Media Monde and the INA went on strike on June 28 to claim funding guaranteeing the independence of public broadcasting.
Currently, this fee is earmarked: the money collected is used exclusively to finance public sector TV and radio channels, such as France 2, France 3, Radio France, Arte, France 24, RFI, etc.: the elected president wants finance public broadcasting by another means, but the government has not yet explained this financial mechanism.
2. Will rent increases be capped? Here is a double measure not appearing in the text that MoneyVox was able to consult: the 3.5% revaluation of APL from this summer (rate which corresponds to the automatic increase scheduled for October) and the capping of rent increases at the same rate of 3.5%. This rate corresponds to the reference index of rents (IRL) estimated for the 2nd quarter, which will be revealed on July 13 by INSEE. At this stage, by application of the IRL, any rent increase in the next three months cannot exceed 3.5%. But the IRL applicable to the last quarter of 2022 will probably be even higher. Why the government says it wants block increases 3.5%. A measure very recently welcomed by consumer associations, which are campaigning for a rent freeze. This file will probably be one of the subjects of debate this summer at the Assembly.
has amputated a lot of purchasing power… The rise in APL and the blocking of rents are controversial
3. Food checks and new fuel aid in a 2022 bis budget? Emergency food aid, or food check, 100 euros, for current recipients of social minima: the announcement of this measure was repeated many times by the government in June. To this was added at the beginning of July the announcement by the Minister of Economy and Finance Bruno Le Maire of more generous compensation for all those who are obliged to take their vehicle to go to work. Target fuel assistance differentiating from the discount at the pump and which would be allocated according to the level of income. These two measures, which should integrate the amending finance bill, must be detailed more precisely by the government… Then the latter will have to convince the deputies of their merits. End of suspense on Thursday, following the presentation of the purchasing power bill and amending budget 2022 package?
Activity bonus, Smic, retirement… These increases that you will benefit from and those that are threatened