France is steering clear of across-the-board fuel-tax cuts despite record pump prices. Budget Minister David Amiel told La Tribune Dimanche, "Across-the-board tax cuts cost so much that they would inevitably lead to generalized tax increases down the line," adding, "We will not promise with one hand only to take back with the other."
He likewise shot down a proposal from Marine Le Pen, the far-right presidential hopeful, to cut fuel taxes. "Marine Le Pen's proposal to lower value-added-tax on fuel would cost more than the entire budget of the Ministry of Justice," Amiel said. "The answer is no."
Macron has little leeway as the deficit swells before next year's presidential vote. On Friday, Scope Ratings cut France's credit rating, citing a continued deterioration in the fiscal outlook.
Last week, the government prolonged tailored aid for sectors most vulnerable to rising fuel bills because of renewed fighting in the Middle East, including fishermen and farmers. In addition, the government is arranging procurement of diesel, jet fuel and natural gas to ensure availability in the months ahead. On Friday, Macron said he will bring the Group of Seven together to consider a possible release from strategic oil-product reserves.
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Tensions at home are building. Over the past week, fishermen shut down access to multiple ports and a fuel depot on the Mediterranean coast, and calls are spreading on social media to restart the Yellow Vests movement that began in 2018 and later turned into nationwide riots.
Elsewhere in Europe, governments are taking a different tack. In Italy, the government led by Giorgia Meloni scrapped a reduction in the vehicle ownership tax. In Germany, federal and state leaders on Friday signed off on a €2.5 billion ($2.9 billion) package that features a three-month fuel-tax reduction starting in October and proposes a temporary ceiling on pump prices to protect motorists and businesses.
If France holds the line on fuel taxes while prices stay high, households and small firms shoulder more of the immediate pain, which can ripple through grocery bills, travel costs and delivery fees. Watch how quickly Europe's supply efforts and any G7 stockpile release show up at the pump, and how unrest at home shapes what Paris does next on targeted aid.
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