“Inflation indemnity” of 100 euros from Government retoted by Senate

Senators removed on Wednesday, at first reading, this aid to be paid to 38 million French to meet the rise in energy prices. They preferred to him what they deem “better targeted”.

Le Monde with AFP

The Government has made its flagship measure of the second draft budget corrected for 2021. But the Senate, dominated by the right opposition, eliminated, Wednesday, 17 November, the “inflation allowance” of 100 euros of the Government , to substitute a “punctual” reinforcement of existing devices deemed “better targeted”.

The High Assembly adopted by 145 for, 30 votes to and 168 abstentions, at first reading, this draft amending finance law (PLF) called “end of management” as amended. The National Assembly will be able to restore the government’s text in the rest of the shuttle.

Announced by the Prime Minister, Jean Castex, in October, in response to the flight of fuel prices, “the inflation indemnity” amounts to 100 euros and must be paid to 38 million French, “employees , independent, retirees, unemployed, beneficiaries of the social minima, stock market students, receiving less than 2,000 euros per month “, according to the government. Its cost for public finances is estimated at 3.8 billion euros. “We have made a choice of method, it is simplicity and speed,” said the Minister in charge of public accounts Olivier Dussopt, also stressing the commitment of the government “to a wide variety” of beneficiaries.

An “election measure” which “cumulates the disadvantages”

But for the General Rapporteur of the Finance Committee of the Senate, Jean-François Husson (Republicans, LR), this “election measure (…) accumulates the disadvantages”: In addition to its very high cost “for the State , “massive threshold effects” and “significant boot effects attributable to its targeting defect”.

In the place, the Senate voted in hand, with the only voice of the LR group, an exceptional increase of 150 euros of the activity bonus, an exceptional allowance of 150 euros for the beneficiaries of minima social and Social benefits, as well as an additional staffing for mobility aid paid on a case-by-case basis to the unemployed and young insertion. Mr. Husson has touted a “better targeted” device, with a cost for the state brought back to 1.5 billion euros.

The centrist group has chosen to abstain, Vincent Capo-Canellas saying his “skepticism” against a device that “leaves many holes in the racket”, self-employed and retired workers. Abstention also on the left, to mark, according to Rémi Féraud (Socialist Party, PS), that the two devices, that of the government like that of the rapporteur, “are unsatisfactory but that we can still continue to look for better solutions.” / p>

“Everyone goes from his Christmas present,” said Sophie Cut-Polish for the ecologist group. “These aids that are only punctual can not be enough for a purchasing power problem that is in the long term,” she added. For Pascal Savoldelli (Commodity Community), “it’s the distribution of crumbs”.

The bill transcribes the new economic exit forecasts, with a public deficit reduced to 8.2% of GDP and a public debt to 115.3% of GDP at the end of 2021.

/Media reports.