Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Factbox-What is in France's new inflation-relief package

Published 07/04/2022, 07:17 AM
Updated 07/04/2022, 07:30 AM
© Reuters. FILE PHOTO: People, wearing protective face masks, walk past the steps near the Grande Arche at the financial and business district of La Defense in Puteaux near Paris, France, January 31, 2022. REUTERS/Sarah Meyssonnier/File Photo

PARIS (Reuters) - The French government is set to present a much-awaited package of inflation-relief measures on Wednesday in a first test of its ability to pass sorely needed legislation since it lost control of parliament.

The following are the main measures so far flagged by the government or in leaks from the draft text to the press.

TRANSPORT COSTS

The government is to extend a 0.18 euro per litre discount on fuel until the end of August, and Finance Minister Bruno Le Maire has proposed that it should last until the end of the year if lawmakers accept.

Tax-free payments that employers give workers to help cover their transport costs will be raised to 700 from 500 euros for this and next year with the amount specifically for fuel doubled to 400 euros.

People who rely on their cars for work will also be eligible for a subsidy.

BENEFITS, WAGES AND BONUSES

Basic pensions and various welfare payments are to be increased 4% while civil servants will see base salaries increased by 3.5%.

Tax-free bonuses that companies can pay employees will be increased to 3,000 euros from 1,000 and up to 6,000 when payments are made through a profit-sharing scheme.

Rent increases will be capped at 3.5% for one year while housing subsidies will be increased by 3.5%. A food voucher worth 100 euros may also be created for people on low incomes.

A 138-euro annual tax that people pay when they own a television will be scrapped and public television will henceforth be financed by the state budget.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.