Back-dated November 16, 2018 - What are the 'Gilets jaunes' so upset about? Euronews Answers
What are the 'gilets jaunes' so upset about? | Euronews Answers
France will suspend controversial increases to fuel taxes that have sparked three weeks of protests by the 'gilets jaunes' (yellow vests) movement — marking the first major U-turn by President Emmanuel Macron's administration.
The fuel tax hikes will be suspended for at least six months, announced Prime Minister Edouard Philippe in a televised speech on Tuesday, adding that anyone would have to be "deaf or blind" to not see the anger.
"No tax is worth jeopardising the unity of the nation," he said.
The French economy was badly hurt following the third week of protests by the gilets jaunes.
The movement started online as a protest against rising fuel prices but has spread to include people angry about higher living costs.
Demonstrators have blocked major roads across France and held violent protests in some of Paris' fanciest neighborhoods.
Some protesters have sought to distance themselves from the radical and violent fringe elements of the movement.
How did the 'gilets jaunes' movement start?
Discontent was triggered by the government’s measures to keep increasing a direct tax on diesel, a fuel commonly used by motorists in France, as well as the carbon tax. Protesters see these as disproportionately affecting those who use their cars to get to and from their jobs every day.
Their core demands are to put a freeze on fuel tax increases — due in January — and measures to boost spending power.
The hike in fuel prices is due to three things (two of which were decided by the government), Mathieu Chassignet, an expert on transport, told Euronews.
Volatile crude oil prices
Fuel prices are displayed at a petrol station in Nice, France, November 9, 2018
A rise in crude oil prices in 2018 is the first reason why fuel prices have been high this year. The cost surged to a bit more than €80 per barrel in October although it has since dropped to the low 50s, high 40s in November. With a weak euro in regards to the dollar, this increase has been strongly felt by motorists.
“The price of crude oil increased a lot from July to October this year, it only started going down this month,” said Chassignet.
Carbon tax
The second thing is an increase in the carbon tax, which is meant to limit greenhouse gas emissions.
Introduced in 2014 under the Francois Hollande government, the carbon tax falls under the domestic consumption taxes (TIC) umbrella.
The government has the objective to keep increasing this tax for the next few years (going from €39 in 2018 to €47,5 in 2019).
Diesel and petrol taxes
Thirdly, the adjustment of the diesel tax with the petrol tax has particularly made diesel prices go up.
Since the beginning of this year, the diesel tax went up by 7.60 cents per litre, while the tax on petrol went up by 3.90 cents per litre.
How can you break down the price paid at petrol stations?
According to a
government breakdown on the prices of fuels, taxes make up 60% of the total price. The rest is subject to the price of the oil barrel.
Fuel is subject to two taxes. The first one is the domestic consumption tax on energy products (TICPE), which comprises the carbon tax and a value-added tax (VAT).
What are the taxes used for?
The TICPE helps finance the general budget of the state — including eco-friendly projects — territorial authorities, and transport infrastructure. The government expects it to bring in around €7.8 billion in 2019.
But environmentally-friendly projects are not only financed through this tax. Other taxes also contribute to the transition towards greener technologies.
Why did the government decide to take these two measures?
Chassignet said that the government was increasing the carbon tax so the country could keep its commitments towards fighting climate change and greenhouse gas emissions.
Demonstrators wearing yellow vests are evacuated by police as they demonstrate before the arrival French President Emmanuel Macron at the city hall in Albert, France, November 9, 2018.REUTERS/Philippe Wojazer
As for the alignment of the diesel tax with the petrol tax, it became a government measure after studies showed that diesel was as polluting as petrol, said the expert.
“So a heavier tax on diesel is meant to encourage people not to buy diesel cars,” he added.
French Transport Minister Elisabeth Borne said the tax on diesel would increase by 6.5 cents per litre in January 2019. The tax on petrol is set to increase by 2.9 cents at the same time.
The ministry expects the alignment of the petrol and diesel tax in 2022, leaving it at 78 cents per litre.
What will the government do with the surplus money coming from the taxes?
The government
says they plan to use the extra revenue in eco-friendly projects that fight climate change.
“Economic theory shows that if we increase the carbon tax, then CO2 levels will go down,” says Chastignet.
"Even though the government does use the tax revenue to fund environment-friendly projects, there needs to be more transparency in how else they are using the extra money," he said.
Why is kerosene, fuel used by planes, not taxed?
An advertising poster for Airbus is pictured at the Airbus A330 final assembly line at Airbus headquarters in Colomiers, near Toulouse, France, November 26, 2018.REUTERS/Regis Duvignau/File Photo
The highly-polluting kerosene cannot be taxed on international flights because a tax exemption was decided by an international agreement. A ratification of this agreement would need a unanimous vote by all 191 member states of the International Civil Aviation Organisation (ICAO).
However, it is possible to tax domestic flights, said Chastignet. But this hasn't been put forward by the government yet.
What is the government doing to help the people who heavily depend on their car to go to work?
There are government plans in place that are meant to help people who heavily depend on their vehicles for transport, such as a financial incentive to exchange old polluting cars for newer eco-friendly models. The government also offers a subsidy called "ecological bonus" to drivers who rent or buy an electric car.
What other demands has the group added?
A protester wearing a yellow vest, the symbol of a French drivers' protest against higher diesel fuel prices, holds a flag at the approach to the A2 Paris-Brussels Motorway, in Fontaine-Notre-Dame, France, December 4, 2018REUTERS/Pascal Rossignol
In a
statement sent to media outlets, the 'gilets jaunes' movement made public a list of 40 demands they were planning on presenting to the government.
Here are some of the key ones:
Housing
1) No more homeless on the streets
2) Better insulation in housing so that households can pay less on heating
3) A freeze on rent, especially for students and vulnerable employees
Taxes
1) Higher taxes for bigger corporations and less for smaller entrepreneurs
2) No taxing at the source
3) Cancel all hikes on fuel taxes and instead tax kerosene — fuel used by planes
Salaries and pensions
1) Raise the minimum wage to €1,300 (net)/month
2) Pensions should not be less than €1,200/month
3) Salaries and inflation should be adjusted to inflation
4) More permanent contracts known as CDIs in France, less CDDs (fixed-term contract) — which lead to more precarity
5) Maximum salary fixed to €15,000/month
6) Protect French industry — say no to offshoring
Health
1) Same social security system for everybody
2) A rise in handicap allowances
Public finances
1) End to austerity politics
2) A decrease in the price of gas and electricity and to renationalise both utilities.
In another article, published in the newspaper L
e Journal du Dimanche, a collective of gilets jaunes made another set of longer-term demands.
"We ask to know what the taxes are being used for, a social national conference, regional debates on 'territory and mobility', regular referendums on social and societal questions in the country, the adoption of proportional representation for legislative elections so that the population be better represented in parliament."
More immediately the movement is asking for the freeze of tax hikes on fuel and the cancellation of MOT tests.
"We want to reach an agreement quickly so the economy of the country can get back in good shape before the festive season," wrote the representatives.
What has the government done to defuse the violence?
French Prime Minister Edouard Philippe attends the questions to the government session at the National Assembly in Paris, France, December 4, 2018REUTERS/Gonzalo Fuentes
In his first major U-turn after 18 months in office, President Macron decided to suspend the controversial increase to fuel taxes for at least six months in response to three weeks of violent protests.
In a televised speech on Tuesday (December 4), Prime Minister Philippe said they would use that time to discuss other measures to help the working poor and the middle class who rely on vehicles to get to work.
Other measures Philippe announced to combat the rising anger are:
1) A freeze on the rise of electricity and gas until May 2019
2) A suspension on the reform of MOT tests that was planned for next year
3) A consultation with citizens on taxes so the government can be more transparent in this area.
05/12/2018 - France delays Food Price Rise for Farmers after protests
France delays food price rise for farmers after protests
PARIS (Reuters) - France, reeling from violent protests over the cost of living, said on Wednesday it will delay a planned rise in minimum food prices, incurring the wrath of the main farmers group which urged street action next week.
A powerful constituency in French politics, farmers have long complained of being hit by a price war between retailers, which has benefited consumers but hurt producers.
A "field-to-fork" law adopted early last month sought to ease the burden. One of the key measures, a 10-percent increase in the price floor for food products, was initially due to be adopted at a cabinet meeting on Wednesday.
But Agriculture Minister Didier Guillaume said mass demonstrations led by the so-called "yellow vest" movement, convulsing the country since Nov. 17, had forced the government to postpone the decision.
"This was postponed because of other issues," Guillaume told CNews TV, referring to the widespread protests over fuel taxes which have dominated the government's agenda.
The minister said the decision would be implemented by the government in January or February, before the end of annual price negotiations with supermarkets that started last month.
The government's spokesman later said the measures would be presented again "in the next weeks", with one government source citing the date of Dec. 19.
It remained unclear when the measures could be implemented.
FARMERS TO PROTEST
France's largest farm union FNSEA had warned farmers would see a delay in the adoption of the measures as a "disastrous signal". The union on Wednesday called for protests all next week to denounce the delay as well as excessive taxes and what they call increasing hostility towards farmers.
"We are not joining the movement of yellow vests, we will express the difficulties specific to the agricultural sector," an FNSEA spokeswoman told Reuters.
French retailers federation FCD, which includes big names like Carrefour and Casino, also urged the government to adopt the measures as fast as possible because they needed time to adapt, stressing the need to implement them before the close of negotiations with suppliers.
The "yellow vest" protests began last month with the aim of highlighting the squeeze on household spending from increased taxes on fuel, but have tapped into growing discontent over President Emmanuel Macron's leadership.
Selling at a loss is forbidden in France. It has set a level, called "resale at a loss threshold", below which retailers are not allowed to sell a product.
The government intends to raise that floor by 10 percent and limit discounts to 34 percent of a product's price and to 25 percent of available volumes.
Analysts say the measures, to be applied for a two-year trial period, would reduce aggressive price competition among French retailers and accelerate food inflation. However, many retailers said the final impact on consumers' total spending would be minimal.