November 30, 2021

“The inflation allowance” of 100 euros from the government rebutted by the Senate

The government has made it its flagship measure of the second rectified budget bill for 2021. But the Senate, dominated by the right-wing opposition, on Wednesday, November 17, removed the “inflation allowance” of 100 euros from the government, for him substitute reinforcement “Punctual” of existing devices judged “Better targeted”.

The upper assembly adopted by 145 for, 30 votes against and 168 abstentions, at first reading, this amending finance bill (PLFR) says “End of management” thus modified. The National Assembly will be able to restore the government’s text after the shuttle.

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Announced by the Prime Minister, Jean Castex, in October, in reaction to the surge in fuel prices, “the inflation allowance” amounts to 100 euros and must 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”, affirmed the Minister in charge of public accounts Olivier Dussopt, also underlining the commitment of the government “At a wide perimeter” of beneficiaries.

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An “electoral measure” which “combines the disadvantages”

But for the general rapporteur of the Senate finance committee, Jean-François Husson (Les Républicains, 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”.

Instead, the Senate voted by show of hands, with the only votes of the LR group, an exceptional increase of 150 euros in the activity bonus, an exceptional allowance of 150 euros for beneficiaries of minimum social benefits and 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. Mr. Husson praised a device “Better targeted”, with a cost for the State reduced to 1.5 billion euros.

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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. Abstention also on the left, to mark, according to Rémi Féraud (Socialist Party, 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. “These aid which are only one-off cannot suffice for a problem of purchasing power which is part of the long term”, she added. For Pascal Savoldelli (CRCE, majority communist), “It is the distribution of the crumbs”.

The bill 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 to 115.3% of GDP at the end of 2021.

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The World with AFP