The government had announced the end of “whatever the cost” last March, despite galloping inflation. ” VSthat would be like throwing gasoline on a fire,” justified the Minister of Economy Bruno the Mayor. But the rotting conflict in Ukraine led by Russia is still driving up electricity costs for homes. As a result, in its 2023 budget, the government must still provide 45 billion euros in the face of soaring energy prices.
A slate to come which is already integrated into other expenses, in the midst of the debate on the 2023 budget in the National Assembly, and which Bercy has quantified between 2021 and 2023. Over the period, thee Emmanuel Macron’s government will thus have spent 100 billion euros to protect thes French consequences of inflationsaid on Monday Bruno The Maire.
“In total, in 2021, 2022, 2023, we will have spent 100 billion euros to protect our compatriots once morest soaring prices”he said during a debate on the budget planning law in the National Assembly.the.
However, the tariff shield which caps price increases at 4% until the end of 2022 is not the only tool deployed. The state also funded the energy check of 100 euros distributed last year to 5.8 million households, or the fuel allowance of 100 to 300 euros granted to low-income workers.
The extension of the tariff shield alone will cost 16 billion euros in 2023, said Bruno Le Maire. The device ” exceptional energy vouchers » will have a cost of 1.8 billion euros, he said.
The level of expenditure is therefore colossal, but the Minister has already justified this action. SAccording to the Minister of Economy, « sn the price shield, the increase in gas and electricity prices would be at least 100% next year! That is an increase of 120 euros on average per month and per household”, he declared at the beginning of September in the press.
Launched in October 2021 and extended several times, the tariff shield makes it possible to contain the rise in energy prices on the regulated tariff paid by households. Once the tariff shield is completed at the end of 2022, “we will keep devices to cushion energy prices”while prices exploded on the wholesale markets, “ and we will take specific measures to support the most vulnerable”said Prime Minister Elisabeth Borne.
At the same time, the government is prepared to seek new all-out rents to finance the tariff shield.
Debt control
In fact, with the rise in interest rates by the European Central Bank (ECB) by 0.75%, it is more expensive for the French State to borrow on the markets. While it was at 97.6% of GDP before the health crisis, public debt reached 114.5% of GDP in the first quarter of 2022, compared to 112.9% at the end of 2021. Also, thehe return below the 3% deficit is not expected before… 2027.
Despite these poor results, France should not be sanctioned by Brussels, which has suspended since the health crisis the rule imposing a public debt at 60% of GDP and a public deficit of less than 3% of GDP. The suspension has also been extended until the end of 2023 due to the economic consequences of the war in Ukraine.
Emmanuel Macron has undertaken to improve the situation of public finances during his second five-year term, by bringing the public deficit below 3% of GDP by 2027, which would make it possible to begin to reduce the weight of the this.
(with Archyde.com)
