The Senate, dominated by the right-wing opposition, removed the government’s “inflation allowance” of 100 euros, but Gabriel Attal, the government spokesman, recalled this Thursday, November 18 that the presidential majority will have ” the last word “ on this flagship measure of the second amended budget project for 2021.
Poorly targeted, too short-term, opportunistic… The much criticized inflation allowance
The High Assembly adopted by 145 votes in favor, 30 votes against and 168 abstentions, on first reading, this amended finance bill (PLFR) called “end of management” thus modified. The National Assembly will be able to re-establish the government’s text following the parliamentary shuttle.
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Compensation of 3.8 billion euros
For “Reassure the French”, government spokesman Gabriel Attal recalled this Thursday morning on LCI that it is the National Assembly, held by the presidential majority, which will have ” the last word “. He also denounced the way in which the Senate abolished the measure, “On the sly, at night”.
Announced by the Prime Minister in October, in reaction to soaring fuel prices, “Inflation compensation” amounts to 100 euros and will be paid to 38 million French people, “Employees, self-employed, retirees, unemployed, recipients of minimum social benefits, scholarship students, receiving less than 2,000 euros per month”, according to the government. Its cost to public finances is estimated at 3.8 billion euros.
“We made a choice of method, it is simplicity and speed”, said the Minister of Public Accounts Olivier Dussopt.
“Electoral measure”
For the general rapporteur of the Senate Finance Committee Jean-François Husson (LR), this “Electoral measure […] cumulates the disadvantages “ : besides its cost ” very high “ for the State, “Massive threshold effects” and “Significant windfall effects attributable to its lack of targeting”.
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Instead, the Senate voted by show of hands, with the only votes of the Les Républicains group, an exceptional increase of 150 euros in the activity bonus, an exceptional allowance of 150 euros for beneficiaries of minimum social benefits and benefits social benefits, as well as an additional allocation for mobility aid paid on a case-by-case basis to the unemployed and young people on the path to integration.
Fuel prices: “We could experience a sustainable period at a high level”
Jean-François Husson praised a device “Better targeted”, with a cost for the State reduced to 1.5 billion euros.
“If it is less expensive, that means that there are fewer French people who receive it”, retorted Gabriel Attal on LCI. The government has “Took massive action; we assume it “, he added.
“Everyone goes for their Christmas present”
The centrist group chose to abstain, Vincent Capo-Canellas saying his “Skepticism” facing a device that “Leaves a lot of holes in the racket”, self-employed workers and retirees in particular.
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Abstention also on the left. To mark, according to Rémi Féraud (PS), that the two devices, that of the government as that of the rapporteur, “Are unsatisfactory but that we can still continue to seek better solutions together”.
“Everyone goes for their Christmas present”, launched Sophie Taillé-Polian for the environmental group, while for Pascal Savoldelli (CRCE with communist majority), “It is the distribution of the crumbs”.
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The PLFR transcribes the new economic forecasts for the end of the crisis, with a public deficit reduced to 8.2% of GDP and a public debt of 115.3% of GDP at the end of 2021.
