The first decisions of Emmanuel Macron’s second presidential term are marked by the urgency of improving the purchasing power of the French, threatened by inflation, and avoiding an autumn of social conflict in the street. The Government of Prime Minister Elisabeth Borne has already sent a bill to Parliament that provides, among other measures, for a salary increase of 3.5% for civil servants and 4% for pensions, in addition to continuing to apply caps on energy prices and subsidies for those who consume fuel for work reasons.
The radical left, one of whose deputies occupies the presidency of the finance commission in the National Assembly, considers the legislative package insufficient. Insists on a rise to 1,500 euros net of the minimum wage and the blocking of prices of basic necessities. The Government, which maintains the objective of reducing the deficit to less than 3% of GDP in 2027, estimates that it is not possible to meet the first demand because it would cause more inflation. Regarding the blocking of prices, he warns that it would cause shortages and shortages, since the producers would sell in other markets.
The French Government presumes that inflation is lower than that of other neighboring countries, due to the limits that were decided on gas and electricity, and that, during the pandemic, despite the difficulties, purchasing power was achieved would continue to increase. There is concern, however, about the incessant increase in debt. The Minister of the Economy, Bruno Le Maire, has sounded the alarm. The Government is aware that if it wants to obtain the collaboration of the Republicans (LR, right) in Parliament to build majorities, it must seek to contain spending and a horizon of more balanced public accounts.
Macron received on Thursday afternoon, in the Elysée gardens, more than two hundred deputies from the parties that support him. He encouraged them to work with other political groups to build consensus. The president acknowledged that the tasks ahead are “immense” and “a little dizzying”, but he was confident of achieving good results.
