Faced with the rise in energy and fuel prices, Jean Castex announces an “inflation allowance” of 100 euros – archyworldys

The subject is sensitive, because it affects the daily life of the population: given the rise in energy and fuel prices, the government has decided to take measures, announced by the Prime Minister, Jean Castex, Thursday, October 21. .

Rather than a check to motorists, a ” Gaz factory ” according to the Prime Minister, or a reduction in taxes – “It’s not just gasoline” which is increasing – the government has chosen a third path: a “Inflation compensation” of 100 euros which will be attributed automatically to each person who earns less than 2000 euros net per month, declared the Prime Minister at the “8:00 pm” of TF1. “A middle class allowance”, said Mr. Castex.

The premium – tax-exempt, Matignon said – will be paid in one go, from the end of December by employers to employees and between January and February for other categories, such as retirees, self-employed, scholarship students or apprentices, without the need for ‘no action, said the Prime Minister.

A surprise solution, developed after several days of hesitation, in order to avoid, six months before the presidential election, a rise in disputes in this highly sensitive issue. “We are told: ‘You took eight days to decide.’ Well yes, it’s a complicated subject ”, commented the head of government, defending the solution “The fairest, the most efficient”. Prices at the pump rose another 2 cents last week, reaching historically high levels, to 1.56 euros per liter for diesel on average and 1.62 euros for unleaded petrol.

The head of government compared this amount of 100 euros of“Inflation compensation” to a sum of 80 euros which he assimilates to the bill, on average, of the increase in fuels over the year: it is based on 9 cents per liter more at the pump over the year and an average distance traveled of 14,000 kilometers.

Despite this additional expenditure of 3.8 billion euros, the Prime Minister assured that France would keep its commitments in terms of public deficit. He also wanted to “Confirm, this evening, what[’il avait] said to this antenna on September 30 ” : “In 2021, the purchasing power of French women and men will increase, I look forward to seeing you. “

Gas price lock

In addition, the price of gas will be blocked “Throughout the year 2022”, and not just until April. The experts “Tell us that, probably, the recession” prices “Will be slower” than expected and “So we took our responsibilities by maintaining the price freeze throughout” next year, said the head of government.

Mr. Castex had already announced, on September 30, blocking the price of gas for around five million subscribers to cope with the constant increases for months. “Gas prices, compared to 2019, have been multiplied by six”, observed the Prime Minister, Thursday.

This “Tariff shield” however, was due to expire in April 2022, based on forecasts that “The price of gas should tumble” on this horizon.

According to the smoothing mechanism planned by the executive, from 2023, consumers will pay a little more for gas than market prices, so that the sums not paid by subscribers in 2022 are gradually recovered by the operators.