Bruno Le Maire, Minister of Economy, warned that the inflationary peak was now at the Council of Ministers on Thursday, July 7. The government has created a “worker fuel allowance” to help the French. It will be in effect from October 1st. This will gradually replace the 18 cent fuel discount, which was extended to September 31st. The price will rise to 12c on October 1, and then to 6c on November 1. It will disappear on December 1. “L’Obs,” a survey that tracks who can benefit from the new aid, how much and how to get it, takes stock.
This aid is for active people who use their car to commute to work. It also applies to employees and trainees in work-study. They will need to show proof of income and less than or equal to 14,100 euros in reference tax income. According to the government, this measure will affect approximately 11 million French citizens.
The Minister of Economy Bruno Le Maire stated that the executive was open to the extension of the measure. “It will be up the national representation” whether aid should also be granted to French citizens who receive more than the government’s ceiling.
There are two parameters that must be considered: the person’s taxable earnings and the distance between work and home. The aid amount will vary depending on the person. It can be anywhere between 100 and 300 euro.
“Compensation will increase to 200 euros for individuals whose income from tax is below 9,400 euros and 100 euros for those whose income is between 9,400-14,100 euros. Bruno Le Maire announced that 50% of those who work more than 30 kilometers from their residence will receive an increase in compensation.
The “bonus” also included the “big rollers”, workers who have traveled more than 12,000 km per year for work.
Bruno Le Maire stated that the new workers’ fuel allowance is available by simply declaring on the General Directorate of Public Finance. He added that if your home and work are far from you or you are an itinerant nurse’s aide, then you can declare that you are heavy roller to receive an additional allowance.
According to a government press release, the people affected “will receive the compensation directly in the bank account within a few weeks.”
An increase in the discount to 15-18 cents per liter on fuel prices and the creation a “worker fuel allowance”, will result in additional expenditures of 4.6 billion euro, which adds up to 7.6 billion euros over the year.
The Court of Auditors is concerned about public spending that is increased by others. The financial jurisdiction challenged the credibility of the government’s deficit (5%), growth (2.5%) and inflation (5%) forecasts in a report. Pierre Moscovici, the First President of Court of Auditors, alerted that 2.5% was possible but it was based on very positive assumptions.
Bruno Le Maire stated that the new aid program would cost only 2 billion euros annually, while the state’s current rebate of 18cimes per liter fuel costs 800 million euros per month. “This is proof that it doesn’t matter what it costs. He stressed that our public finances don’t allow us to do so. He compared the 25 billion previously mentioned to the “twenty billion euro” purchasing power measures that were presented at the Council of Ministers on Thursday afternoon.
