Financial Aid of 100 Euros for Workers and Those with Modest Incomes: Macron’s Proposal to Tackle Rising Fuel Prices

2023-09-25 12:10:09

Faced with the increase in fuel prices, Emmanuel Macron proposed on Sunday evening financial aid of 100 euros for workers and people with modest incomes, starting next year.

A helping hand. “I asked the government, for the upcoming budget, to continue to support working French people,” said the President of the Republic during a television interview this Sunday evening.

Faced with soaring fuel prices, Emmanuel Macron proposed financial aid of 100 euros per car per year.

Concretely, only “workers”, i.e. people in employment, and those with modest incomes will be able to benefit from it. Aid is allocated individually, not per household. Thus, the members of a couple will each be able to have access to it.

4.3 million people affected

The President of the Republic said he was aware that this is very targeted aid, limited only to those who need it most. “It’s relevant, we don’t help households that don’t need it and we don’t help comfort trips,” he argued.

In total, 4.3 million people would be affected, or 10 million households. The beneficiaries are those whose income is part of “the first five deciles, that is to say the lowest 50% of French people”.

The threshold corresponds to less than 1,314 euros net per month for a single person, 3,285 euros net per month for a couple with one child or even 5,255 euros net per month for a couple with three children.

a renewal of “worker’s compensation”

The aid is similar to the “worker’s compensation” introduced in recent months and will apply at the start of next year following it passes Parliament.

The old “worker’s compensation” only concerned people who had a motor vehicle and used it to get to work. Retirees and unemployed people were excluded. Last year, of the 10 million eligible households, only seven million applied.

To do this, the State intends to pay 500 million euros, the equivalent of a reduction of 20 cents per liter for six months for a motorist driving 12,200 km/year with a vehicle consuming 6.5 liters per 100 km .

This compensation takes place in a climate of high inflation. Fuel levels have never been higher. For example, since July, a liter of diesel has increased by 25 cents and unleaded 98 has crossed the 2 euro mark. Prices at the pump do not appear to be decreasing.

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