Raising pensions and abolishing broadcasting fees: this is how France is dealing with the energy crisis and inflation

Created: 07/26/2022, 17:34

By: Felix Durach

The National Assembly in France has passed the first major relief package for citizens.

The decision is seen as a success for President Emmanuel Macron.

© Thomas Padilla/dpa

France is also struggling with the energy crisis and record-breaking inflation.

The National Assembly has now passed a first law to strengthen purchasing power.

Paris - The imminent supply stop of Russian gas could intensify the already existing energy crisis in the coming winter.

Added to this are the record-breaking inflation rates, which represent a further burden for European citizens.

The loss of purchasing power, the energy crises and the imminent heat crisis for the winter are a major challenge for the population across Europe and require decisive action by the government.

In France, the National Assembly has now introduced a law that is intended to provide relief.

On Friday morning, the National Assembly passed the first major law to boost purchasing power.

This was preceded by a debate that lasted four days.

The bill passed 341 to 116.

The law was also seen by observers as the first major test for President Emmanuel Macron's electoral alliance, which lost an absolute majority in June's National Assembly election.

Government in France strengthens purchasing power of citizens: pension increase and rent cap

Among other things, the draft law stipulates a one-off increase in pensions and other social benefits by four percent.

At the same time, the rights of landlords in the event of rent increases are to be temporarily restricted.

Rents may therefore be increased by a maximum of 3.5 percent.

In addition, employers will in future be able to pay their employees a tax-free bonus of EUR 6,000 instead of the previous EUR 1,000.

This step is intended to provide further financial relief.

The government plans to distribute meal vouchers to around eight million low-income households.

Citizens who depend on a car for work are to be supported with income-related fuel allowances.

The National Assembly in France has approved a first law to strengthen purchasing power and abolished broadcasting fees.

© Christophe Ena/dpa

Energy crisis: French parliament wants to restart coal-fired power plants

With a looming energy crisis in mind, the law also clears the way for a coal-fired power plant that closed in March to resume operations.

"The return to coal is not good news," admitted ruling party MP Maud Bregeon.

It was a "temporary" solution in an "exceptional situation," she added.

The measure was sharply criticized by the opposition.

The waiver of some environmental regulations in the construction of the liquid gas terminal in Le Havre also aroused criticism from the opposition.

"Replacing Putin's gas with American shale gas is absurd," said Green MP Delphine Batho.

Relief for the population: France abolishes broadcasting fees

On Saturday, the National Assembly also voted to abolish broadcasting fees in France.

So far, this has been 138 euros per year and is only due for households that own a television.

Macron had already announced this measure during the election campaign to provide further relief.

In the future, public service broadcasting is to be financed, among other things, by part of the VAT.

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However, the second chamber of parliament, the Senate, still has to approve the bills.