PARIS – The French government suspended Tuesday for six months the increase in taxation on the fuel and promised the freeze of energy tariffs during the winter, in order to untie the country's social crisis, generated by the demonstrations of the movement of "yellow vests", reported local media.
In a televised address, the French Prime Minister, Edouard Philippe, asserted that he "should be deaf" to "not hear the anger" of the French, ensuring that "to fix the cap and hold it is a necessity to govern France, but no tax deserves to endanger the unity of the Nation. "
Since the violent riots of last Saturday, having shaken Paris, the French government had pledged to appease the anger of the "yellow vests" against the social and fiscal policy of the government and to prevent new clashes.
Faced with a protest movement with no leaders or structures, the French government had to make a gesture to reassure the rebels by suspending for three months three tax measures to come into effect on January 1, 2019.
This is the rise in the carbon tax, on gasoline, fuel oil and diesel, the convergence of the taxation of diesel with that of gasoline and the alignment on the taxation of individuals of the diesel taxation of non-road contractors
"We want in this time to identify and implement just and effective support measures, and if we do not find them, we will draw the consequences," said the Prime Minister. French, assuring that "neither the rates of electricity, nor those of the gas will increase, as it was planned, during the concertation and thus during the winter which is announced."
"These decisions, immediate, must bring peace and serenity to the country" and "allow to engage a real dialogue on all the concerns that have been expressed in recent weeks", he said supported.
The French government has also announced a local consultation that will be conducted from December 15, 2018 to March 1, 2019.
"Solutions must be different in the big cities and the countryside Let's talk about it, let's improve it Let's complete it, I'm ready," said Philippe.
For his part, the French Ministry of Finance, Bruno Le Maire, said that the demonstrations conducted by the "yellow vests" have already had a "severe and continuous" impact on the economy.
The Minister of Finance explained that "the course of debt reduction will be held", following the measures announced by the government.
"It was discussed with the President of the Republic Monday evening.There is a course set by the President which is that of the respect of our European commitments, the reduction of the expenditure, of the reduction of the debt and the reduction of the taxes and this heading, it will be held ", clarified the Mayor in front of the journalists in Brussels.
According to a source close to the record, these measures should lead to a shortfall of nearly 2 billion euros for public finances, equivalent to 0.1 point of gross domestic product (GDP).
In this context, Edouard Philippe suggested during his televised speech that the tax freeze would not call into question the government's objectives with regard to public debt.
"If taxes go down, spending will have to go down, because we do not want to leave debts to our children.These debts are already considerable," warned the head of the government, without mentioning the amount of these debts. .