On the second day of the examination of the purchasing power bill, the points of disagreement on fuel subsidies between the government and LR are being resolved. According to government sources quoted by AFP, an agreement is in sight between the executive and the Republicans on fuel. Discussions are now taking place “at the level of Prime Minister” Elisabeth Borne, these sources specify.
Rebate
As a reminder, in the absence of a relative majority in Parliament, the government is seeking compromises on this highly anticipated text. The discussions relate in particular to the level of the rebate, knowing that the government does not want “to leave the budgetary framework” fixed. An LR deputy confirms that “discussions are continuing” and are moving forward. The majority would “not really” waive the fuel allowance, but it “would take another form”, he argues.
Therefore, the idea would be to extend the current rebate of 18 cents on a liter of fuel by increasing it a little but waiving the fuel allowance for low-income workers and heavy commuters. Companies might also help employees “in relay of the rebate”, according to one of the sources. As a reminder, the government has already extended the rebate on fuel until the end of the summer and was then to gradually replace it with a fuel allowance for low-income workers and heavy commuters. This large wheeler allowance was to be put in place from October 1.
“Prime Macron” voted
In addition, earlier in the day, the deputies voted to continue the “Macron bonus”, an exceptional tax-free and desocialized bonus. After more than six hours of discussions on the interest of bonuses, rather than wage increases advocated by the left, the deputies adopted by 327 votes once morest 119 this article 1 of the flagship text of the summer in Parliament.
Thus employers will be able to pay until December 31, 2023 an exceptional bonus of a maximum amount of 3,000 euros (or 6,000 euros in the event of a profit-sharing agreement), exempt from income tax and social security contributions, for employees whose income is less than three times the value of the minimum wage.
This is the extension of the “Macron bonus”, introduced in 2019 during the yellow vests crisis, but with a tripling of the ceiling of this bonus. According to the impact study carried out by the government, more than 15 million people benefited from this bonus between 2019 and 2022, for an average amount of the bonus amounting to 542 euros.
The left-wing Nupes alliance believes that ‘bonuses are a substitute for salaries’ and that they depend on ‘the goodwill of the boss’ – to which the majority replied that this vision of the company was ‘from another time “.
Several left-wing elected officials have also repeatedly denounced a “desire to circumvent the financing of Social Security and pension funds” via this bonus. For her part, Marine Le Pen considered that “the bonuses are not ideal, but for millions of French people, it is still an increase in their purchasing power”.
The bill also plans to perpetuate the bonus in the private sector, in the form of a “value sharing bonus”. This will only be exempt from social contributions, up to a limit of 3,000 euros (6,000 euros in the event of a profit-sharing agreement).
The maximum amount of the bonus and the maximum level of remuneration that can give access to it must be the subject of a company or group agreement or, failing that, a unilateral decision by the employer.
(With AFP)
