What is in France’s new inflation-relief package

The French government is set to present a much-awaited package of inflation-relief measures on Wednesday in a first test of its ability to pass sorely needed legislation since it lost control of parliament.

The following are the main measures so far flagged by the government or in leaks from the draft text to the press.

The government is to extend a 0.18 euro per litre discount on fuel until the end of August, and Finance Minister Bruno Le Maire has proposed that it should last until the end of the year if lawmakers accept.

Tax-free payments that employers give workers to help cover their transport costs will be raised to 700 from 500 euros for this and next year with the amount specifically for fuel doubled to 400 euros.

People who rely on their cars for work will also be eligible for a subsidy.

Basic pensions and various welfare payments are to be increased 4% while civil servants will see base salaries increased by 3.5%.

Tax-free bonuses that companies can pay employees will be increased to 3,000 euros from 1,000 and up to 6,000 when payments are made through a profit-sharing scheme.

Rent increases will be capped at 3.5% for one year while housing subsidies will be increased by 3.5%. A food voucher worth 100 euros may also be created for people on low incomes.

A 138-euro annual tax that people pay when they own a television will be scrapped and public television will henceforth be financed by the state budget.