France approves purchasing power bill as inflation bites

PARIS

The French National Assembly on Friday passed a crucial bill to boost household purchasing power with ramped up social benefits and measures to curb the energy crunch fueling surging inflation.

Premier Elisabeth Borne said the passage of the emergency purchasing power bill – approved by 341 votes in favor and 116 against – exemplified a “spirit of responsibility” to protect people from the impact of spiraling living costs.

The bill will now move to the Senate, where it will be on the agenda next Thursday.

It includes provisions to increase pensions and social benefits by 4%, limit rent hikes, raise the cap of the so-called Macron bonus, and energy supply measures to ensure France’s needs are met amid disruptions in supplies of fuel and gas by Russia.

On energy, lawmakers approved provisions for exceptional measures that will apply for less than five years, including redirecting supply from gas-fired power plants to the heating network for homes and businesses; construction of a temporary floating LNG gas terminal at the Le Havre port, and temporary reopening of a coal-fired plant in Saint-Avold that was closed this March.