The resilience plan announced on Wednesday – discount at the pump and aid to businesses – would cost the state around 7 billion.
In 2020, faced with the coronavirus, the government deployed its action in two stages. With its emergency measures, it was responsible for helping companies and individuals to overcome the confinements. The recovery plan was then to learn the lessons of the crisis and project the French economy into a future of sovereignty, competitiveness, industrial technology… Educated by experience, Jean Castex merged, with his “economic and social resilience plan” , the two steps in one…
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On the strategy side, the head of government brought the issues of sovereignty back to the fore, emphasizing the need to limit national dependence on Russia but also to accelerate the energy transition, in order to “Get out of fossil fuels as quickly as possible”. In detail, he wants “exit entirely from Russian oil and gas by 2027”. He was still worried about the question of France’s technological and food sovereignty. “We need to find alternative food sources. The departments must make proposals to me quickly. We also need to change our procedures to go faster”supported Jean Castex.
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Discount at the pump
For the protection component, eminently sensitive less than a month before the first round of the presidential election, the Prime Minister has undertaken to bear the State part of the rise in energy prices caused by the tensions in the oil markets. The new measures will therefore complete the many measures put in place since the autumn to dampen inflation. Their total cost, before the new announcements on Wednesday, was estimated at around 24 billion euros, to which must be added 2.8 billion for the discount of 15 cents per liter at the pump and between 3 and 4 billion in aid. sectors for companies.
A colossal bill, more than 30 billion euros, which remains however at this stage four times lower than the expenses incurred during the “whatever the cost” during the health crisis.
Read the fileEnergy prices: all about the consequences of the war in Ukraine
In detail, the government intends to reduce the bill for motorists, the self-employed and businesses hit by soaring energy prices, caused by the war in Ukraine. While the price of a barrel of oil is hovering around 100 dollars and fuel prices exceed 2 euros per liter on average, Jean Castex recalled that all French people will be able to benefit from a discount at the pump of 15 cents per liter of fuel, from 1is April for four months. The rebate will be extended to vehicle natural gas (NGV) and liquefied petroleum gas (LPG).
Responding to the request made by the government to the oil companies to amplify its efforts towards private individuals, TotalEnergies has undertaken to apply an additional discount of 10 centimes in all its stations. Also for households, Barbara Pompili announced a strengthening of the MaPrimeRénov’ thermal renovation aid scheme. The government will offer an additional 1,000 euros, starting April 15, until the end of the year.
SEE ALSO – Rising fuel prices: who is the help of 15 cents from the “resilience plan” for?
Boats at dock
The fishermen, at the origin of social movements in Brittany and whose most boats have remained at the quay since Monday, have not been forgotten. They will benefit from a “exceptional financial aid equivalent to 35 cents per liter of fishing diesel”, until the end of July, said Jean Castex. The French fishing industry had also announced on Wednesday the establishment of an exceptional system of 6 million euros to help its members support the soaring energy prices.
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Finally, the State comes to the rescue of energy-intensive companies, those whose gas and electricity expenses represent “at least 3% of their turnover and which could make losses in 2022“. State aid, limited to 25 million euros per company, will “covering half of the surplus of their energy expenditure“, assured the Prime Minister. For Bruno Le Maire, the sectors most affected will be “the metallurgical industry, the chemical industry, the paper and cardboard industry, certain agricultural and agri-food industries”.
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The first reactions, mixed, were quick. “These measures respond to short-term problems encountered by many entrepreneurs who are today confronted with the consequences of the conflict: increased cost of energy, of certain raw materials or even the closure of certain markets”welcomed the association CroissancePlus. “The resilience plan will be very limited, circumscribed in particular to large energy-intensive companies or in commercial links with countries in conflict. No concrete measure will relieve the cash flow of VSEs”, on the other hand regretted the Union of Independents (SDI).