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“The query of buying energy will come up for fractions of the inhabitants”

Rise in gasoline and petrol costs, hovering commodity costs… the specter of inflation is resurfacing in Europe and notably in France, fueling considerations in regards to the upkeep of the buying energy of the French. The query may in a short time turn into a problem of the presidential marketing campaign for 2022, notes Pierre Madec, economist on the French Observatory of Financial Conjunctures (OFCE).

In accordance with INSEE, the buying energy of households would have elevated by 0.4% in 2020, and it might even improve by 1.8% in 2021. The French are the winners of the disaster?

Certainly, family earnings has been largely supported by the coverage of “no matter the price”, by way of the financing of short-time working, the solidarity fund or focused assist. A lot in order that in the present day the buying energy of households is fairly on a dynamic trajectory. If we follow INSEE knowledge, we’d due to this fact are likely to assume that each one is effectively, however macroeconomic indicators have their limits.

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In actuality, households have suffered from the disaster in a really heterogeneous means. Not like what has occurred in different nations, the federal government didn’t select to put in writing everybody a verify. Once we look intimately, the conditions are due to this fact very completely different, between those that have been unemployed, those that have acquired assist, the self-employed who’ve been kind of supported … Some fractions of the inhabitants say in the present day that issues should not going so effectively and, for them, the query of buying energy will certainly come up.

How one can cope with the difficulty?

From a political viewpoint, it is rather difficult. The problem is to establish which conditions are probably the most problematic. We noticed it clearly throughout the disaster: the federal government put in place an entire arsenal of measures, however we nonetheless seen that there have been holes within the racket. In reality, the query, taken extra broadly – and which is able to maybe be on the heart of the presidential debate – is to enhance general social safety techniques, particularly for sure extra fragile classes similar to younger individuals. For instance, it could be obligatory to wonder if we’re bringing again to the desk the discussions across the “common earnings of exercise”, a bit of put apart for nearly two years.

Ought to we improve the salaries of the poorest?

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