THE PURCHASING POWER BILL

HARDLY DEBATED

Its content is already the subject of a bitter political battle between the oppositions and the executive, the former counting on the absence of an absolute majority in the National Assembly of the presidential camp to impose some of their key measures. This is why the Minister of the Economy alerted on the level of indebtedness of France, this Monday. A way of calling on the opposition to restraint before the debates on the purchasing power bill in the National Assembly.

France has reached its “alert rating” on public finances, indeed estimated the Minister of the Economy Bruno Le Maire, Monday June 27, at a time when the executive is seeking a compromise with the opposition for its project. purchasing power law.

"Everything is not possible, quite simply because we have reached the alert level on public finances", affirmed Mr. Le Maire, adding that "financing conditions have changed" and that today the France borrows “at more than 2%” to finance public spending, when it did so recently at negative or very low rates. According to the National Institute of Statistics and Economic Studies (Insee), French public debt exceeded 2,900 billion euros at the end of the third quarter, or 114.5% of gross domestic product (GDP), due to also from sluggish economic growth.

The purchasing power bill, the subject of all negotiations

On the right, the new president of the Les Républicains group in the National Assembly, Olivier Marleix, strongly insisted on the risk of an increase in the French debt, Monday morning on Europe 1, a few minutes before Mr. The mayor. “On the question of purchasing power and such a problem for our compatriots, obviously we will do everything to converge with the government” and “move forward on these measures”, declared the deputy for Eure-et-Loire then that the Republicans, if they refuse to participate in the government, ensure that they will possibly vote on texts “on a case-by-case basis”.

Mr. Marleix however laid down two conditions: the need to take into account the fact that the question of purchasing power is "a major subject for working France", and "obviously the government will have to agree to to consider the question of the financing of these measures”.

“We will be demanding of the government so that it is funded. The French debt situation today is very serious (…) The government cannot say: “Come on, 30 billion additional debt!” It would be irresponsible,” he said, promising that LR deputies “will make proposals on the subject of financing.”

On the left, the deputy and national secretary of the French Communist Party, Fabien Roussel, wished on CNews "a sharp increase in purchasing power" with in particular "an immediate drop in VAT on gasoline". “We will not be satisfied with crumbs” and “we will all take to the streets if necessary to obtain these measures”, he warned.

A boost of eight billion euros for social benefits

Asked about the proposal made by several opposition parties, such as Les Républicains or the National Rally, for a reduction in fuel tax, Mr. Le Maire assured that the government was going to “discuss” with these formations but that “ the spirit of compromise must be accompanied by a spirit of decision”.

The extension of existing measures

Several measures already implemented in recent months to combat rising prices should be extended. This is the case of the tariff shield on energy (which has already been extended by decree until December 31, 2022), and which caps the sale prices of gas and electricity. The discount of 18 cents per liter on fuels also still holds, at least for the month of August. The government is thinking in parallel about a new device more targeted on large wheelers, but its articulation with the discount is not clear-cut, assured Friday June 24 the Minister of Energy Transition, Agnès Pannier-Runacher.

The inflation allowance, one-off, should also make a comeback under the name of food check. The government has abandoned the idea of ​​a monthly food check, which was to allow access to quality products. This new financial aid, the amount of which has not yet been fixed, will be paid “in one go” and “at the start of the school year”, directly into the bank account of the most modest, announced the Prime Minister, Elisabeth Borne. While ensuring that the reflection continued on a food check more targeted on "quality" and "organic" products.

Finally, the Macron bonus, which appeared during the "yellow vests" crisis, will be made permanent and its ceiling tripled. Companies will therefore be able to pay up to 3,000 euros to their employees, or even 6,000 euros for companies with fewer than 50 employees and those with a profit-sharing agreement.

Revaluations of social benefits

Several social benefits need to be upgraded. Retirement and disability pensions under the basic schemes, the activity bonus (the lump sum of which is 563.68 euros), but also family benefits and social minima, including the active solidarity income (550. 93 euros for a single person without resources), the allowance for disabled adults (919.86 euros maximum), the solidarity allowance for the elderly (916.78 euros for a single person) should increase by 4% , according to the bill consulted. This boost will be retroactive to July 1. The cost of these revaluations amounts to "a little less than 7 billion at the end of 2022", according to Les Echos

The amending finance bill, presented at the same time as the "purchasing power" bill, should also incorporate a 3.5% increase in personalized housing assistance (APL), which would represent a additional expenditure of 168 million euros.

New measures put in place

The government is also planning a series of new measures. Civil servants will thus see the end of the freezing of their index point, which serves as the basis for their remuneration. The public service unions are asking for between 3% for the CFDT and 20% for the CFTC. A 1% increase would cost the state 2 billion euros per year, according to the government, which should announce the value of the new point on June 28.

A reduction in the contributions of the self-employed is also provided for in the bill. It should allow them to earn “550 euros per year at the level of the minimum wage”, assured mid-May the spokesperson for the former government Gabriel Attal.

The bill also provides for an increase in the “transport bonus” paid by companies to their employees to cover part of the cost of their home-work travel. The upper limit of tax and social security exemption for the employer's assumption of the fuel costs of its employees will thus be doubled, from 200 to 400 euros for the years 2022 and 2023. Employees will also be able to combine this bonus with the paid by the employer for 50% of the price of public transport season tickets.

The abolition of the audiovisual license fee should also be effective next fall, with a gain for households of 138 euros, ie a shortfall for the State of more than 3 billion euros net.

The text also wants to open up the possibility of establishing a profit-sharing scheme by the employer even without a branch agreement or with staff representatives. The objective is to allow employees to benefit from the sharing of the value created in the company. On the other hand, the track of an “employee dividend”, which was to make participation in the company compulsory, “does not appear in the initial text at this stage”, confirms the Ministry of Labor.

In addition to these measures, the government plans to include in the amending finance bill a “rent shield”, aimed at capping rent increases for one year at 3.5%, confirmed Bruno.

“Politics is about choices (…) It is imperative to reduce public debt”, but “we must at the same time protect our compatriots who are the most fragile, but protect them responsibly. », concludes Bruno Lemaire.