The French Parliament Approves a 20-Billion-Euro Package to Fight Inflation

The lower Chamber of the French Parliament has approved a package of 20 billion euros to reduce inflation, as well as tax benefits to help families. Reuters reports.

The lower house last week already approved a package of anti-inflation measures, which include an increase in pensions, a temporary cap on rent increases and an increase in wages for public sector employees. In addition, the additional budget bill envisages the financing of increased expenses and tax benefits with tax revenues that have exceeded expectations since the beginning of the year.

The bill envisages the budget deficit of the state sector in the amount of 5% of the GDP, which is unchanged compared to the previous year. In addition, the draft law cancels the annual fee for televisions.

Lawmakers did not support an amendment that would have imposed a “super tax” on oil and tanker majors because they benefit from high energy prices and inflated shipping rates.

In July, the European Central Bank announced it would raise the three main interest rates in the eurozone by 0.50 percentage points, the first since 2011, to fight inflation. The bank made the decision against the backdrop of the euro falling below the dollar for the first time since 2002, and inflation reaching a record high of 8.6% in June.

After the French Lower Chamber approved the supplementary budget bill for 2022, it was sent to the Senate, where the conservative party, “The Republicans” are in the majority. After the Senate, the bill will return to the lower house for final approval.