French MPs approve anti-inflation law

The French National Assembly on Friday approved in the first reading the so-called purchasing power law, which includes a range of measures to counteract the effect of escalating inflation under opposition from the left.

A total of 341 MPs voted in favor of the bill, while 116 voted against and 21 abstained in the dawn vote, after five days of heated debate, that now allows the Senate to continue the legislative process.

With the bloc that supports the president Emmanuel Macronalso voted for MPs from the conservative Los Republicanos and far-right National Association (RN) Marine LePin.

One of the stellar measures is a 4% retroactive revaluation of pensions and social benefits from July 1, which adds to the increases applied at the beginning of the year, from 1.1% for the former and 1.8% for the latest.

The device also includes the maintenance of the so-called “tariff shield” for gas and electricity for private consumers and small and medium-sized businesses.

In the case of gas, the price for individuals has been frozen since October, which prevented an increase of at least 50%. In the electricity sector, this year’s increase would be capped at 4% instead of at least 35% if the rules that applied before were applied.

The government has not tired of repeating in recent months that it is this “shield” that largely explains why inflation in France is the lowest among the eurozone countries (5.8% y/y in June).

This purchasing power law must be supplemented by another to change the budget for 2022, which begins consideration in Parliament this afternoon. national assembly. EFE

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