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BY
Seneca ESG
- November 24, 2022
The French Ministry for the Economy and Finance plans to spend EUR8.4bn (USD8.67bn) to help local businesses pay soaring electricity and gas bills, as reported by Reuters on November 20. The country will reduce electricity tax and allow companies to use nuclear-generated electricity at affordable prices. In the midst of an energy crisis in Europe, the French government aims to help local companies continue their economic activities, an act aligned with that of the German government. Earlier this year, German Chancellor Olaf Scholz announced a “defensive shield” worth EUR200bn (USD205.07bn) to protect German companies from the impact of surging energy costs.
The French government has taken measures to mitigate energy price increases and inflation. Prior to the EUR8.4bn financial support, the French government has implemented an energy tariff shield since October 2021. The tariff shield has since been extended to 2023. In January 2022, the French government forced Électricité de France (EDF) , the state-owned energy company, to cap energy price rise at 4% a year. In September, the country spent EUR45bn (USD46.14bn) to help companies deal with energy cost increases. In October, the French government spent EUR16bn (USD16.41bn) again to help small and mid-sized companies pay energy bills.
Sources:
https://www.theguardian.com/business/2022/jan/14/france-edf-cap-household-energy-bills
https://www.theguardian.com/world/2022/sep/26/france-budget-shield-energy-price-shocks
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