Home Finance Rising fuel prices: Lecornu wants to use tax “surplus” to finance electrification

Rising fuel prices: Lecornu wants to use tax “surplus” to finance electrification

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The subject will be on the agenda of the meeting organized by the Prime Minister this Wednesday. The government wants to bring out priority actions to electrify the economy and depend less on imported hydrocarbons.

Sébastien Lecornu a donné «instruction» Wednesday to its ministers to identify priority actions to electrify the economy and depend less on imported hydrocarbons, suggesting financing them through “surplus” of tax revenue generated by the rise in fuel prices which have soared since the start of the war in the Middle East, Matignon told AFP. The Prime Minister thus asks the Minister of Action and Public Accounts David Amiel “to work on an allocation of possible surplus tax revenue linked to the increase in fuel prices to finance the priority measures of the electrification plan”according to the text of these instructions.

For his part, the Minister of the Economy Roland Lescure is responsible for setting up, in the coming weeks, an electric vehicle rental offer «dédiée à certaines professions» who use their car a lot to go to work, such as self-employed nurses or caregivers.

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Aides «ciblées»

During the government meeting Wednesday morning, in addition to fuels and their “economic impacts”the ministers will also discuss the public deficit, the parliamentary calendar, and simplification measures aimed in particular at making the State more efficient. The government is struggling to respond to soaring prices at the pump which are rising as the war in the Middle East, which began on February 28, continues.

The price of a liter of diesel reached an absolute record since 1985 on a weekly average last week, surpassing the highest recorded after Russia’s invasion of Ukraine four years ago, according to figures published by the government. Forced into budgetary discipline to maintain the deficit at 5% of gross domestic product this year, the executive refuses to lower fuel taxes, a measure demanded by the National Rally deemed too onerous. He also rules out the blocking of prices, requested by La France insoumise, which risks generating a “pénurie”even if some neighboring countries have announced decisions in this direction.

In order to alleviate the cash flow difficulties of the most affected sectors – fishing, agriculture, transport – the government has granted aid «ciblées»possibly renewable, representing a total of nearly 70 million euros per month. Without calming the transporters, determined to mobilize all week, nor the farmers whose first union, the FNSEA, was received on Monday by Sébastien Lecornu, who promised new aid if the conflict drags on.