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French PM vows gas price freeze and tax cuts to curb energy inflation

 

Jean Castex says latest increase in gas price will be ‘the last.’

 

FRANCE-HEALTH-VIRUS-POLITICS

French Prime Minister Jean Castex | Benoit Tessier/AFP via Getty Images

BY PIERRE-PAUL BERMINGHAM

https://www.politico.eu/article/french-government-to-freeze-gas-prices-lower-tax-on-electricity/

 

The French government will freeze gas prices and cut taxes on electricity to slow energy inflation, the prime minister announced Thursday evening.

 

“We will freeze, freeze — there will be no more increases in the price of gas,” Jean Castex told TV station TF1. “I have that power.”

 

The price of gas is slated to jump 12.6 percent on Friday. Castex confirmed this increase would indeed occur, but vowed “it is the last.”

 

The prime minister noted that gas prices are expected to rise a further 30 percent by the end of the year, while the cost of electricity is forecast to jump by 10 to 12 percent on February 1.

 

Castex noted that experts predict prices will fall as of next April. “We have a bump to handle,” he said. If the expected decline does not transpire, Castex said, the government “could take measures to lower taxes,” such as adjusting VAT rates.

 

As for electricity rates, Castex promised to amend the upcoming budget to lower taxes on electricity. He said recent price increases had already boosted VAT revenues by €600 million, money which he “gave back to the French people” in the form of €100 bonuses to some taxpayers.

 

This article is part of POLITICO’s premium policy service: Pro Energy and Climate. From climate change, emissions targets, alternative fuels and more, our specialized journalists keep you on top of the topics driving the Energy and Climate policy agenda. Email pro@politico.eu for a complimentary trial.


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