Meal vouchers and inflation: the government forced to play firefighters

by time news

2023-11-15 20:11:47

Published on Nov. 15, 2023 at 6:36 p.m. Updated on Nov. 15, 2023 at 7:11 p.m.

It was urgent to put out the beginning of the fire around meal vouchers and to silence the bronca which was rising on an ultra-sensitive subject, moreover at the moment when the sky was darkening over employment: the shopping basket.

Since the purchasing power law of summer 2022, the use of meal vouchers – from which nearly 5 million employees benefit – had been extended to all food products, even those which were not directly consumable without cooking or preparation. This exemption, resulting from an LR amendment from the Senate, was to last until December 31 of this year. Hence the emotion of a certain number of elected officials, consumer associations and family associations in the face of this decisive date.

Lack of anticipation

“Nothing will change for the French […] food inflation is starting to decline, but it remains difficult for a certain number of our compatriots, we will extend it throughout the year 2024″, tried to reassure the Minister Delegate for SMEs and Trade, Olivier Grégoire, dispatched Tuesday evening to M6 to announce this extension.

A few hours earlier, questioned in the Senate, the Minister of Economy and Finance, Bruno Le Maire, assured that he was “in favor” of this extension, without specifying the legislative vehicle envisaged to do this. Enough to fuel accusations of lack of anticipation from the government coming from left-wing parliamentarians, from the RN, but also from the majority.

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It was all the more urgent for the government to defuse the subject as this extension costs nothing to public finances and the executive assures that it has never considered not extending the system. The political cost could be high while purchasing power remains the number one priority for the French and the controversy reinforced the image of disconnection of the executive, already strong in public opinion. Also, the government, like Bruno Le Maire this Wednesday on Europe 1, made a big deal about a “common sense” measure which “corresponds to people’s expectations”.

Before the announcement of the extension, Marine Le Pen at the RN had warned of the “millions of French people caught by the throat by inflation”. “This indifference to suffering is no longer acceptable,” she added on something else, it quickly flares up,” says MP Erwan Balanant, spokesperson for Modem in the Assembly, whose group has proposed a text on the subject.

Sustain the purchase of food

As soon as the extension was announced by the government, it was the restaurateurs, via the Union of Hotel Trades and Industries (Umih) who protested. On France Info Wednesday morning, the Minister of Agriculture, Marc Fesneau, recalled that they had received a lot of help during Covid and could understand the measure.

According to our information, when the exemption was put in place at the end of 2022, 46% of meal vouchers were consumed in restaurants compared to 44% in the third quarter of 2023, a drop of only 2 points. On the other hand, their consumption in supermarkets increased from 22 to 28% over the same period.

Bruno Le Maire put forward the idea that beyond this one-year extension – through an amendment to the finance bill or a bill – the discussion opens to perpetuate the purchase of foodstuffs thanks to to these tickets, which could then change their name.

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