During his televised address on March 2, Head of State Emmanuel Macron announced a “resilience plan” to deal with the economic fallout from Russia’s invasion of Ukraine that began on February 24. In particular, this war led to an explosion in the prices of gas, fuels and raw materials. A situation that weighs on the portfolio of the French but also on the cash flow of professionals such as transporters, farmers or fishermen. This “plan for economic and social resilience” was presented on Wednesday afternoon by Prime Minister Jean Castex. The support of 15 cents for fuel will be extended in particular to natural gas for vehicles and LPG. These are the most important measures of this resilience plan for households and businesses.
- Discount of 15 cents on fuel prices extended to natural gas and LPG
- Fishermen will be helped from Wednesday 16 March to 31 July up to 35 cents per liter of diesel
- The State bears part of the additional costs of companies that consume a lot of energy
- The total costs of the resilience plan are between 25 and 26 billion euros, according to the Minister of Economic Affairs
“The state will be there” assured Jean Castex before announcing the main measures of the resilience plan, a resilience plan “in the sense of resistance and protection in the sense of more autonomy and more sovereigntyhe continued. This plan was… “constructed in a framework of coherence and European solidarity. It is an effective short-term plan to face the immediate consequences of the crisis, but which should also allow us to cope with the consequences of this crisis”. According to the Prime Minister, “This crisis affects sectors that have already been hit hard, such as industry, agriculture, fisheries and transport.”
‘The State has already pledged 20 billion euros to absorb the rise in energy prices’ Jean Castex first explained that he recalls the introduction of the inflation allowance or the revaluation of the kilometer allowance. “However, the rise in the oil price forced us to go further” he continued. He confirmed the discount of 15 euro cents per liter at the gas pump. This discount of 15 euro cents in addition will be expanded to natural gas and LPG, announced Jean Castex. This discount should also be revalued: “Total has given an agreement in principle to go beyond state effort” he added.
Boosts for fishermen, farmers and transporters
Earlier this week, hauliers, farmers and fishermen blocked oil depots in Lorient and Brest to protest rising diesel and petrol prices. The head of government announced aid to support these sectors, which are experiencing the consequences of the war in Ukraine. Exceptional financial assistance from 35 cents per liter of diesel will be introduced in particular for fishermen from Wednesday 16 March to 31 July. The Prime Minister assures us that he wants to enforce “fishing activities that contribute to our food sovereignty”.
The government promises support to farmers with help to breeders who have to deal with an increase in the cost of raw materials (cereals, etc…). This support, which will last for four months, should make it possible to offset the losses. A envelope of 400 million euros will be unlocked. Also, a 25% deposit of the TICPE (domestic consumption tax on energy products) fee is deposited into farmers’ cash flow. Support will also be given to carriers. It will represent approximately “1,500 euros on a full truck” for four months, estimates Prime Minister Jean Castex.
As for the construction sector, Jean Castex is calling on public players to show flexibility with a review of rates and tolerance for delays related to delivery issues.
Improved Business Support
As for companies, three already known systems will be strengthened. The ceiling on the state-guaranteed loan (PGE), introduced during the health crisis, has been raised to 35% of turnover from 25% today. Access to tax and social security deferrals will be facilitated and the use of sharing activity will be extended for a further 12 months for agreements already signed.
On the other hand, a new aid measure will come into effect. It will benefit companies whose gas and electricity expenditures represent: “at least 3% of their turnover, and who could make a loss in 2022”and will allow “cover half of the surplus of their energy consumption”detailed Jean Castex