France to earmark $3.3bn in energy subsidies for businesses

France to earmark .3bn in energy subsidies for businesses

Companies, whose electricity and gas bill represents “at least 3%” of their billing and that may register losses in 2022, will be able to benefit from this aid, French Prime Minister Jean Castex explained at a press conference.

The cost for the State of this measure, which makes it possible to cover half of the excess energy costs, is estimated at around 3,000 million euros (3,300 million dollars), stressed the French Minister of the Economy, Bruno Le Maire. .

Another of the criteria that companies must meet is that the rise in their electricity or gas bills be at least 40% since the start of the war, said Le Maire, who limited the amount to 25 million euros to which they can choose. a company.

This government measure, which for months has sought to limit the rise in fuel and energy for households, will mainly benefit the metallurgical, chemical and paper industry sectors, as well as some agri-food industries.

“Our economy works”, but “we must act” with “the good instruments” and specific support to keep it running, justified the French Prime Minister, during the presentation of the resilience plan.

The French executive announced another subsidy for companies, to help them depend less on certain raw materials from Russia such as titanium, palladium or neon.

France has already spent more than 22 billion euros to limit the rise in household energy prices in various measures, including a 100-euro subsidy for 38 million people to offset inflation.

In addition to the eventual economic consequences, the price increase could take a political toll on French President Emmanuel Macron, who is running for re-election in the elections scheduled for April 10 and 24.

The first half of his term was marked by the mobilization of the “yellow vests”, a protest against the situation of the popular classes and initiated as a result of the increase in fuel prices. Since then, he has been vigilant.

The government also announced this Wednesday an exceptional aid to fishermen “equivalent to 35 euro cents per liter” of fuel used to fish until the end of July and a package of 400 million euros for farmers.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts