Emmanuel Macron defends “the inflation compensation” of 100 euros, “fairer” than the reduction in taxes

President Emmanuel Macron defended on Friday the decision to give 100 euros to 38 million French people to compensate for the sharp rise in fuels in Europe, deeming it “fairer and better targeted” than the reduction in taxes. This aid is “not linked to any political cycle whatsoever”, he assured while part of the opposition accuses him of “gifts” six months before the presidential election.

“All European countries are doing it, we cannot do nothing either on the pretext that we are in an election period. To our compatriots who are struggling to make ends meet, we can say to them, excuse us, we are waiting for deadlines, ”he replied.

“Manipulating VAT is not possible in European law”

A reduction in taxes would be costly for public finances, “not targeted” and “not very coherent” in terms of the climate. “What the government decided is fairer and better targeted, they are right! ”, He launched in front of the press at the end of the European Council and the day after the announcements of the Prime Minister Jean Castex.

“Manipulating VAT is not possible under European law. And for fuel taxes, we are in the European average. All those who call for wisdom on public finances would be well advised to look at how much this reduction would cost “which” would be absolutely untargeted “, he said.

“We are going to move towards an increase in energy prices”

“Better a more targeted instrument than a general instrument”, he concluded, defending “an urgent choice” that “many European countries” are currently making. “Checks are exactly what must be done”, it is “an emergency choice, to respond to a sudden shock”. “And we had not done fast enough three years ago, I recognize it very easily,” he said, referring to the “yellow vests” crisis at the end of 2018.

But in the longer term, “we will move towards an increase in energy prices and we must step up aid for the transition”, he said, citing aid for the renovation of buildings or for vehicle conversion. And “the best policy to defend purchasing power is to recreate jobs and recruitments,” he concluded.