Gasoline is a key factor in the rising rent prices. Bruno Le Maire (Minister of Economy) returned to the government’s tracks Monday, June 27, for protection of purchasing power. France, however, has raised its “red flag” regarding public finances.
The government will request that TotalEnergies make additional efforts to increase or extend the fuel discount of 10c per liter it has already established, in addition to the 18 cents that the State applies.
The Minister of Economy declared that “everyone must get their hands dirty” when he said that all parties should be involved in fighting inflation. He continued, saying that he would ask Patrick Pouyanne, TotalEnergies’ boss, to put in another effort because fuel prices remain very high. He also indicated that he had to meet with the CEO of the oil company on Monday morning. . “All the effort can’t rest only with the state.
The executive is finishing its bill on purchasing power. An amending budget will be presented. These measures include the extension in August for the 18 cent fuel discount that was introduced on April 1. The government is also considering a new device to replace this aid that targets large riders.
TotalEnergies first applied a 10 cent per liter discount in February at its rural service stations, before expanding it to all stations on April 1. Bruno Le Maire stated, “I would like TotalEnergies’ to continue this effort and why not increase?
A housing “shield” will be introduced in the executive bill that will limit rent increases to 3.5% for the second quarter 2023. “Rents will not be increased. We won’t be able exceed 3.5%. However, inflation levels could allow us to have 4, 5, or 6%. It is a guarantee that we provide to the French. The inflation-indexed rent reference index is used to determine the amount of increase that lessors can authorize.
Bruno Le Maire says we need to “find a compromise” regarding rents. “For many weeks, I received associations from landlords, social housing associations, landlords… It is important to consider everyone’s needs. This is how we can get ahead. […] “I think that this rent shield is a great compromise for all of us,” he said.
He also warned about France’s state of its public finances. France has now reached an “alert level” in terms of public finances. Bruno Le Maire stated that “everything is impossible, simply because the alert level has been reached on public finances”. He also said that “the financing conditions had changed” and that France now borrows more than 2% to finance public spending. This was despite borrowing at very low or negative rates.
Bruno Le Maire, when asked about the proposal of several opposition parties such as Les Republicains and the National Rally for a reduction of fuel tax, said that the government would “discuss” the matter but that it “must be accompanied by a spirit that is decisive”.
He stated that additional fuel spending, in the form of some political formations, could reach 20 to 25 billion euros. Or else, we would have to stop using other things. .
