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The French Government will give 100 euros to people who earn less than 2000 euros per month

The measure announced by Prime Minister Jean Castex and which seeks to offset the inflationary effect of fuel prices will benefit 38 million people in the country. They will receive the check automatically, regardless of whether they have a car or use it little or a lot.

The citizens of Iparralde that earn less than 2000 euros net per month will receive a 100 euro check, according to the measure announced yesterday by the French Government to offset the inflationary effect of fuel prices.

This measure will favor 38 million people throughout the French state, that is, to all those who do not reach that threshold of 2,000 euros of net monthly income, the country’s median salary, regardless of whether they have a car or use it little or a lot.

Beneficiaries will receive this check automatically without having to do any paperwork as of December. This was stated on Thursday by Prime Minister Jean Castex, who insisted when presenting this measure on the TF1 television channel that they wanted it to be “simple” and that part of the middle class could also benefit.

“We are facing an exceptional situation and an exceptional solution must be found,” stressed Castex, who justified this new aid mechanism to offset the rise in energy three weeks after announcing a “tariff shield” to limit the rise in gas prices and electricity for private consumers.

In the case of this check for 100 euros, it has been calculated, according to the Prime Minister, taking into account that the French travel an average of 14,000 kilometers a year with their vehicle, and that with the rise that has been registered in the price of gasoline since the beginning of January (9 cents) that means an extra cost of 80 euros.

The check will be paid in different ways. It will come to employees through their companies. For farmers, the self-employed or retirees, other channels will be used that Castex said will be specified in the coming days.

The cost to the State of this measure will be 3.8 billion euros, which in part will be offset by increased VAT revenue from fuels because of the price of these fuels, estimated at around 1 billion euros.

The rest will have to come from savings in other items of public spending. Because as Castex said, his Government has already presented the deficit forecast to Brussels for 2022, which is 5% of gross domestic product (GDP) and “we will comply with it.”

That is this check will not increase the red numbers of public accounts.

On September 30, Castex released a “rate shield” for electricity and gas, after increasing the so-called energy check, which some six million low-income households receive. To the 150 euros they received in spring, 100 euros are now added and they will have another 150 next spring.

For electricity, the chief executive indicated that day that prices will limit their increase to 4% in January. It must be taken into account that so far in 2021 there have been two increases, one of 1.16% in January and another of 0.48 in August and that despite the fact that in the wholesale market the increases have been much higher.

For gas, after the last increase that came into effect on October 1 (12.6% compared to September), the rates for individuals will be frozen for the remainder of this year and all of 2022. That means that the State will assume the possible increases in gas in international markets.

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