The text “purchasing power” definitively adopted

The text “purchasing power” definitively adopted

The French Parliament definitively adopted on Wednesday the draft law on the protection of purchasing power integrating a first part of measures which will be supplemented by a series of provisions included in the amending finance bill (PLFR) for 2022, including the Adoption is expected by the end of the week.

The National Assembly adopted the text by 395 votes against 112, the Senate by 235 votes for and 27 against. The two chambers adopted the compromise text established Monday by the Joint Joint Committee (CMP) bringing together deputies and senators for this bill.

In total, the measures included in this text, as well as those of the PLFR aimed at supporting the purchasing power of the French in the face of soaring inflation (including aid for fuels and the extension of the energy shield or the removal of the audiovisual license fee), represent an amount of approximately 20 billion euros according to the government.

The text on purchasing power also includes a chapter on “energy sovereignty”, with a series of measures intended to ensure the security of gas and electricity supplies, in the context of the energy crisis linked to the war in Ukraine and accentuated by the production problems of the French nuclear fleet. In particular, derogations from the environment code and the labor code are provided for to allow a possible temporary reopening of the coal-fired power plant in Saint-Avold (Moselle) and the construction of an LNG terminal in Le Havre (Seine-Maritime) to the import of liquefied natural gas.

A series of provisions adopted by Parliament will make it possible to alleviate the impact on EDF’s accounts of the “energy shield” limiting the increase in tariffs for consumers, as recommended by the Energy Regulation Commission (CRE) last month.

The volume of low-cost electricity that EDF must sell to its competitors under the Arenh system (regulated access to historical nuclear electricity) has been capped at 120 TWh (terawatt hours) per year and the minimum reference price has was raised to 49.5 euros per MWh (megawatt hour), against 42 euros previously, subject to validation by the European Commission.

Read alsoMixed joint commission, last debates in the Senate: final sprint for the purchasing power law

Here are the main measures included in the bill “on emergency measures for the protection of purchasing power”:

Revaluation of social benefits

Early revaluation of 4%, retroactive to July 1, of various social benefits and social minima: retirement pensions, family allowances, allowance for disabled adults (AAH), solidarity allowance for the elderly (Aspa), active solidarity income (RSA) ) or even an activity bonus.

Early revaluation of 3.5%, retroactive to July 1, of APL (personalized housing assistance). 4% increase in scholarships based on social criteria at the start of the school year.

Deconjugation of the Disabled Adult Allowance (AAH) in the fall, with a “right of option” mechanism to prevent certain beneficiaries from losing out.

Capping the increase in rents

Supervision of the increase in rents to a maximum of 3.5%, between October 2022 and October 2023, for households as well as for SMEs.

Incentive to pay participation or incentive

Tripling until the end of 2023 of the ceiling below which the “value sharing bonus” (known as the “Macron bonus”) is tax-exempt and exempt from social security contributions.

For each employee earning up to three times the minimum wage, this ceiling now rises to 6,000 euros per year when the company has a profit-sharing or participation agreement, and to 3,000 euros if it is not the case.

Exceptional release of employee savings

Possibility open until December 31, 2022 to release in advance but without social or tax deductions up to 10,000 euros in employee savings, provided that these sums are not placed elsewhere but used for the purchase of goods or services .

Lower social security contributions for the self-employed

Reduction of employer contributions on overtime in SMEs

Flat-rate deduction – the amount of which will be defined by decree – of employer contributions on overtime in companies with fewer than 250 employees, from October 1, 2022.

Widening the use of meal vouchers

Possibility, until December 31, 2023, of using restaurant vouchers for the purchase of food products “whether or not they are directly consumable”, which now includes, for example, pasta, starches, groceries or even unprocessed meat and fish.

(with Reuters)

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