the government’s ideas for ending the crisis

The government is presenting a series of measures on Thursday to support households hit by inflation.

Faced with inflation, the government lifts the veil this Thursday on a series of long-awaited measures intended to protect the purchasing power of the French, and which will be seen as a passing exam for its relative majority in the Assembly against opposition on the offensive.

“The urgency of purchasing power” is the “first challenge” for the executive and Parliament, defended Prime Minister Elisabeth Borne on Wednesday in her general policy speech to the National Assembly.

Fuel discount and price shield

In terms of energy, the government has decided to extend at least until the end of August the fuel discount of 18 cents. He also paved the way ahead of the parliamentary debate for a further extension until the end of the year and the creation of a new “workers’ fuel allowance”, means-tested.

The extension until the end of the year of the “tariff shield” (cap on electricity and gas prices) is also recorded.

Basic pensions, social benefits and index point

The retirement and disability pensions from the basic schemes will be revalued by 4%. This increase, combined with that of just over 1% in January, is approaching the level of inflation, which reached 5.8% in June.

Family benefits and social minimanamely the active solidarity income (RSA), the allowance for disabled adults (AAH) and the solidarity allowance for the elderly (Aspa) will also be revalued by 4%.

The 5.7 million civil servants also obtained general increase of 3.5% in the value of the index point which serves as the basis for their remuneration. Additional measures have also been announced, such as the 7% increase in State participation in the financing of collective catering.

Food voucher and Prime Macron

A food check of 100 euros, plus 50 euros per dependent child, will be paid to nine million households. In 2020, during the Covid-19 crisis, a similar bonus of 150 euros per adult and 100 euros per child concerned just over four million households.

The ceiling of the exceptional tax-free and desocialised purchasing power bonus, known as Macron bonus, will be tripled. Companies will therefore be able to pay up to 3,000 euros to their employees, and even up to 6,000 euros for those who have set up a profit-sharing or participation scheme.

A reduction in contributions for the self-employed is planned. This measure, which aims for more equity between the contributions of employees and the self-employed, should allow the latter to earn 550 euros per year at the level of the minimum wage.

At the end of the Council of Ministers, the hearing of Bruno Le Maire and the Minister Delegate for Public Accounts Gabriel Attal by the Finance Committee of the Assembly, now chaired by the Insoumis Eric Coquerel, will be a baptism of fire. “These measures are our working basis. With my government, we will listen to you and we will amend them when convergences emerge”, promised Elisabeth Borne this Wednesday.

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