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French Lawmakers Set to Approve Inflation Relief Package

PARIS — The French parliament on Thursday was due to approve an inflation-mitigating package aimed at supporting citizens’ purchasing power and helping them cope with rising consumer and energy costs.

The package was split into two bills.of first timeA bill designed specifically to combat inflation with a series of measures worth €20 billion (about $20.4 billion) was passed by two chambers of parliament on Wednesday.of The secondThe Supplemental Appropriations Bill, which will set aside €44 billion for new spending in 2022, will go to a final vote on Thursday after members of both houses agreed on a common version.

“This is a victory for the French, a victory for our compatriots who are struggling to make a living and are worried about rising prices,” said France’s Economy Minister Bruno Le Maire. told RTL Radio on thursday. “Thanks to this purchasing power package, they will be able to cope.”

France, like the rest of Europe, has been affected by the war in Ukraine, but not as severely as some of its neighbors. Like Germany, they rely far more on Russian natural gas to power their economy.

Inflation in France rose to 6.8% in July, lower than nearly all other eurozone countries, According to EurostatCountries with strong tourism sectors have also experienced 0.5% growth in Q2exceeded analyst expectations.

The measures include extending fuel subsidies, which reduce the cost of gasoline, through the end of the year. Rent hike cap set to expire in June next year. His public pension and other benefits increased by 4%. A small increase in the salaries of civil servants.and relaxed rules governing size A tax exempt bonus that a private company can grant to some employees.

The package will also deliver on President Emmanuel Macron’s campaign pledge to abolish television subscription fees, create a one-time cash bonus to be distributed to low-income households in September, and allow some private sector employees to You can cash out on reward day. .

Mr Macron made a bailout package one of his top priorities in his second term. It was also the first major test of his government’s ability to pass legislation in the newly collapsed House of Representatives, where his Centrist Alliance does not control an absolute majority of seats.

Mr Macron’s party and its allies reached a compromise with mainstream conservatives, who voted in favor of the package, while left-wing lawmakers who opposed the president either voted against it or abstained.

Left-wing parties criticized the measure as being too cowardly and relying too much on temporary bonuses rather than permanent wage increases. He argued that he would support a hike and stronger measures, such as a tax on the soaring windfall profits of large energy projects, as European countries such as the UK have already done.

“In the face of rising prices, you surrendered,” said Adrian Quattenens, a member of the left-wing French Amboud party. Said lawmakers on Wednesday. “You didn’t take steps to address the root of the problem.”

To strengthen France’s energy independence, the package also cuts red tape to accelerate the installation of a floating terminal for liquefied natural gas in the northern French port city of Le Havre, saving nearly €10 billion in renewable energy. Allocate to nationalize. French state-owned power company EDF.

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