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Paris — President Emmanuel Macron's administration will get the first taste of life under France's new political order when it submits a bill to help households cope with runaway inflation without controlling the majority of parliament. ..
In last month's parliamentary elections, the Macron Party lost an absolute majority because it brought great benefits to the far-right National Rally and the left-wing Nupez Alliance.
Why is purchasing power billing important?
While households are increasingly suffering in the face of record inflation, the government is awaiting the opposition to use new forces to significantly rewrite the proposed bill. Is being pressured to pass quickly.
Left- and right-wing rivals have already called for amendments that put pressure on vulnerable public finances unless the government and Macron can convince them to withdraw.
The tricky political horse trade over the next few days will usher in the Macron administration's waiting in Congress for the next five years.
The memory of the massive "Yellow Vest" street protests and violence of 2018 is still fresh, and the government wants to avoid adding a political crisis to the cost of living crisis.
What does this bill mean for finances?
According to Treasury sources, this package could cost more than € 25 billion ($ 26 billion) in addition to the existing measures already worth € 26 billion.
Its main inflation relief measures include a 4% increase in welfare and pension benefits, a 3.5% increase in civil servant wages, and state funding for fuel prices in pumps. Includes extension of rebate.
Despite the extra spending, Treasury Minister Bruno Le Mer said he could keep the budget deficit to 5% of GDP thanks to higher-than-expected tax revenues this year. I am saying.
However, he warned opponents that post-COVID finances were in a "dangerous zone" and there was no room for costly measures in addition to those proposed by the government.
So far, the opposition has not paid attention to his warning. The Far Right National Rally (National Rally) is calling for a significant reduction in the value-added consumption tax on automobile fuels. The conservative Republicans, who are most likely to expect Macron to pass the bill, are also demanding a significant reduction in fuel taxes.
Meanwhile, the Nupe coalition, whose biggest component is the radical left-wing disobedience French party, raises the minimum wage from the current € 1,300 to a net € 1,500. Is demanding that. We also hope to raise salaries for civil servants by 10%, which will lead to inflation in the future.
What does the bill mean for future law?
As the first major bill to be submitted to Congress since the election, it will tone other bills and reveal how opposition will interfere to secure concessions.
After the summer, the next big test is the annual budget bill paid at the end of September, which usually won't pass until the end of December.
Last week, legislators elected Eric Cokerel of the La France Insomyes to chair the Finance Commission of the House of Representatives.
As chairman of the committee, he has considerable authority to decide which amendments will be voted and which will not be voted.
France Unbowed sought to thwart pension reform in 2019 by adding more than 20,000 amendments to the bill to prevent the passage of parliament.
Macron eventually abandoned the reforms due to the COVID-19 crisis, but aims to revive it in his second term.
If the budget law is not adopted after 70 days, the government can bypass Congress, implement it by law, and avoid the closure of the US style government.
($ 1 = 0.9583 euros)
(reported by Leigh Thomas, edited by Richard Lough and Andrew Heavens)
