An overview of the most important recent events in the economic and political landscape of France, which should not be ignored.
The first debates of the new unprecedented Assembly that resulted from the legislative elections and the vote on emergency measures for purchasing power, new episodes of heat waves, a historic drought, and exceptional fires, the new team of Elisabeth Borne, her speech general policy, the interview with Emmanuel Macron on July 14, the seventh wave of Covid... a look back at the highlights of the economic and political news that has occurred since the beginning of the summer. Including links to the decryptions carried out by the experts working for the "Echos" agency in France.
Purchasing power: a battery of measures to support households hit by inflation
On Thursday, August 4, the buying power package that was presented to the public by the government on July 7 was finally and officially approved by the European Parliament after three weeks of heated arguments and concessions between the Macron camp and the right. These actions are an attempt to help families cope with the effects of inflation. Among these are the early revaluations of 4 percent of retirement pensions and social benefits, an increase of 3.5 percent in the index point for civil servants, a back-to-school check of 100 euros, to which 50 euros will need to be added. per child, the extension of the fuel discount and the tariff shield on energy, the abolition of the fee, or even the tripling of the Macron bonus. These are just some of the promises that Emmanuel Macron has made since taking office.
Both a draft legislation on emergency measures for the preservation of purchasing power and an updated budget bill for 2022 have provisions for these actions.
In the most recent weeks, there has been a lot of discussion on potential solutions to the rapidly rising costs at the pump. The administration requested that the rebate for everyone that is now in effect be replaced as soon as possible by an indemnity that would be earmarked for around 11 million families. But in order to deal with the doggedness of the opposition, a compromise had to be reached between the presidential majority and Les Républicains: it is a question of increasing the discount from 18 to 30 euro cents per liter in September and October, then to 10 euro cents in November and December; and postponing the compensation scheme, which the right described as "a gas factory."
Furthermore, on July 22, in response to the potential imposition of a tax on the "superprofits" or "exceptional profits" of large multinational corporations operating in the transport of goods or the oil industry, which have reaped the benefits of a situational rent ever since the conflict in Ukraine, the two groups that have been particularly targeted, TotalEnergies and CMA-CGM, have announced new discounts. Therefore, the French oil giant will implement a discount at the pump of 20 cents per liter between the months of September and November at all of its service stations. After November, the discount will drop to 10 cents per liter for the remainder of the year.
Exceptional heatwave
This summer in France, as a direct result of climate change, there have been many periods of very high temperatures. After an extremely early and severe episode in June, a significant heat wave struck France in the middle of July: the average maximum temperature on July 19 in France (in 30 reference stations throughout the territory) was the second highest ever recorded, with 37.6°C, after August 5, 2003, which peaked at 37.7°C, in the heart of a historic and deadly heat wave. In Biscarrosse, which is located in the Landes, the temperature reached 42.6 degrees Celsius. A total of 64 absolute heat records were broken, the most of which were along the Atlantic coast. In Seine-Maritime, the temperature hit 38.2 degrees Celsius at Cap de la Hève, which is located north of Le Havre.
A historic drought
This sudden return of high heat has devastated a significant portion of the nation that was already afflicted by an extraordinary drought and has had direct implications, in particular on agriculture, river freight, and water-based leisure.
Only 9.7 millimeters of precipitation fell during the month of July, which is around 84 percent below the average amount of precipitation for that time of year.
Since August 2nd, when Paris and the little crown were placed under so-called orange watch, the whole region has been subject to various degrees of water restrictions. 62 different departments, which accounts for around two thirds of the nation, are "under crisis." When the highest level of alert is in effect, it is against the rules to water lawns or automobiles, irrigate fields, or water crops, and it is also against the rules to fill bodies of water. As of the 5th of August, more than one hundred towns lacked access to potable water.
An inter-ministerial crisis unit was formed on August 5 by Prime Minister Elisabeth Borne, who "calls on everyone to conserve our water supplies." Borne also activated the team on August 5.
The Gironde forest ravaged by mega fires
More than 45,000 hectares have been destroyed by flames in France so far in 2022, which is an amount that is five times bigger than the average area that has been impacted by fires during the preceding fifteen years. Since the 1980s, a large offensive plan on incipient fires has been in place, and it has been successful in reducing both the frequency of fires and the amount of land that has been consumed... until lately.
The Southwest was hit the worst by the heat wave that occurred in July, and as a result, there were two enormous fires in the Gironde region. To put out these megafires required a total of twelve days and thirteen nights of work. Up to 3,000 firemen from the Gironde department and an additional 1,200 from a total of 60 agencies were called into action. Near the Arcachon valley, in the commune of La Teste-de-Buch, more than 7,000 hectares of forest were destroyed by fire. The evacuation of 6,000 vacationers from the Dune du Pilat resulted in the destruction of five homes, a restaurant, a nightclub, and all five of the campsites on the Dune du Pilat. Pine forests covering 13,800 hectares were destroyed in Landiras, which is located around 40 kilometers south of Bordeaux.
Other areas that aren't used to seeing flames, like Brittany, were also impacted by the blaze. The fire in the Monts d'Arrée (Finistère) destroyed almost 1,400 hectares of the region's natural vegetation. Even the illustrious Burgundy vineyard, which is known all over the globe, has had its share of problems. A pine forest covering around ten hectares caught fire high above the vineyards of Vosne-Romanée and Nuits-Saint-Georges.
Because of the increased likelihood of forest fires, access to several forest regions in the South has been restricted.
Emmanuel Macron reshuffles without widening his majority
On July 4, the Elysée completed the government of Elisabeth Borne with a simple press release, confirming or even reinforcing the political heavyweights from the right, changing a few ministers, integrating local elected officials as well as technicians from civil society, many parliamentarians, and former ministers. Additionally, the government included a large number of former ministers. Damien Abad has been landed.
Emmanuel Macron took "note of the lack of will of the parties of government to participate in a government agreement" during the first Council of Ministers meeting of this new team. He then called on the team led by Elisabeth Borne to "a lot of voluntarism, ambition" and "a spirit of responsibility to build demanding compromises."
Elisabeth Borne unveils her method and her roadmap
It was the mood of the big days on July 6 at the National Assembly for the proclamation of general policy by Elisabeth Borne. The hemicycle was inflated to block, and there were a few boos and invectives for a speech that concentrated on "compromise."
The Prime Minister took a standing position throughout the over 1 hour and 30 minute long intervention. This supposedly tenacious technician confessed that she did "maybe not conform to the composite portrayal that some were anticipating," and she stated that she did not have "the providential woman complex." She used the phrase "together" in several iterations throughout her speech. She was sure to include the names of the presidents of a variety of political organizations, with the exception of the RN and the LFI, as a way to demonstrate her commitment to this will.
Elisabeth Borne revealed her strategy, which entails achieving full employment and then buying power first. She did not sidestep the issue of retirement benefits, but she reaffirmed that there will be other opportunities for conversation. She confirmed that the state was going to increase to 100 percent in the capital of EDF and announced the deconjugalization of the disabled adult allowance that was being incessantly demanded by associations and opposition groups. She promised "radical responses to the ecological emergency." She also confirmed that the state was going to increase to 100 percent in the capital of EDF.
The conclusion of his policy announcement did not include a vote of confidence. As a response, the left alliance Nupes tabled what was originally a motion of censure but was later dubbed a "move of no confidence." During debate on July 11th, the motion was defeated.
Macron prepares the French for a difficult autumn and sets a course
This was just Emmanuel Macron's second time giving an interview since taking up residence at the Élysée Palace in 2017; however, on July 14, 2018, he participated in the annual custom of doing so. with the intention of attempting to steer his second term in the right direction. During the summer, he promoted a "sobriety plan" for energy use and urged for a "acceleration" of the ecological transition. He remembered his "cap" with full employment as well as a text on work from the end of the summer and conversations on pensions from this autumn. He also recalled his "cap" with discussions on pensions. In order to go on without an absolute majority, the Head of State recalled the weapon of the referendum and reaffirmed that he wished to form the National Council for Refoundation at the beginning of the school year. This allowed for forward movement.
On July 29, just before the summer recess, Emmanuel Macron presided over the last meeting of the Council of Ministers. the chance for him to provide a preliminary evaluation of the development of the texts being debated in Parliament and to review the priorities for the beginning of the new academic year.
Macron and the "Uber files" case
The "Uber files," a comprehensive study that was released on July 10 by the International Consortium of Investigative Journalists, reveals that the corporation "broke the law" and employed harsh business tactics in order to succeed in spite of opposition from politicians and taxi companies. Emmanuel Macron, who is caught in the middle of the turmoil, is being accused of having favored the establishment of the VTC company in France when he was Francois Hollande's Minister of the Economy between 2014 and 2016, by maintaining privileged links with it. Emmanuel Macron served under Francois Hollande as France's Minister of the Economy between 2014 and 2016.
Just a few hours after the findings, the left unleashed a barrage of criticism against Emmanuel Macron, using phrases such as "state scandal," "overwhelming revelations," and "looting of the nation." A number of members of parliament have submitted a request for the establishment of a parliamentary commission of investigation.
According to information provided by the Elysée, a minister is "naturally driven to interact with several enterprises." During an interview on July 12, Emmanuel Macron expressed his satisfaction at having played a role in the establishment of Uber in France. "I agree with everything of it. (...) I brought in firms, I assisted French businesspeople, and most importantly, I assisted young people who were not given employment and who came from challenging communities, he stated. -he declares.
The seventh wave of Covid in ebb but...
There has been a reduction in the number of people who are being hospitalized as the seventh wave of the Covid-19 pandemic makes its way through continental France at the beginning of the month of August. This wave is carried by sub-variants of Omicron, namely BA.5, which is the predominant subtype at this time. "The virological and hospital indicators (remain) at high levels," emphasizes nonetheless Public Health France, which always recommends numerous barrier gestures including the use of a mask when traveling by public transportation. "The virological and hospital indicators (remain) at high levels."
From the 25th to the 31st of July, there was a decrease of 34% in the number of hospitalizations, including only those requiring intensive care (-29 percent ). The number of reported cases has been steadily going down over the last several weeks. On August 4, there were 33,799 confirmed cases, which was a significant decrease from the more than 50,000 cases that had been reported one week earlier.
The Scientific Council of Covid-19, which is dedicated to crisis management, issued a warning on July 21 that stated the "pandemic is not over" and that there is a "urgency to vaccinate the oldest/and or fragile populations who have not yet received their fourth dose." The notice was published as a final notice on July 21. On August 1st, the group of scientists made way for a "committee for monitoring and forecasting health concerns."
On July 20, the government made the decision to expand the second vaccination booster "to persons aged 18 to 60 recognized as being at risk of a severe form of COVID, to pregnant women, and to anyone living in the entourage of vulnerable people or immunocompromised individuals." This expansion affects around 5 million individuals, bringing the total number of French citizens who are eligible for this second dosage of booster medication to almost 17 million. Up until this point, the only persons who could get it were those who were above the age of 60 or immunocompromised.
In addition, on July 26, Parliament definitively adopted, by a final vote of the Senate, a bill rewritten by the right. This bill explicitly put an end to the health pass and other exceptional measures against Covid-19 on August 1; however, it does provide for the possibility of a mandatory test being administered at borders.
The topic of whether or not unvaccinated caregivers should be let back into the community is another contentious one. The text states that as soon as the High Authority for Health determines that the need for carers to be vaccinated is no longer justifiable, the duty for caregivers to be vaccinated will be suspended, and non-vaccinated caregivers would then be "immediately restored."
In any case, it won't be happening the day after tomorrow. On July 22, the Health Advisory Service (HAS) took the initiative by stating that it was "in support of keeping the duty to vaccinate against (the) Covid-19 for employees working in health and medico-social facilities."
Author: Valerie Mazuir
Source: LesEchos and various Frence media.