France to Extend Fuel Subsidies for Farmers, Fishermen, and Construction Workers — Reuters
French Prime Minister Sébastien Lecornu has instructed the government to extend fuel subsidies for farmers, fishermen, and construction workers through the end of the year. These are the sectors that have been hardest hit by the sharp rise in energy prices caused by the war with Iran.
“The goal is to maintain economic activity, jobs, and growth, while ensuring predictability for companies through the end of the year,” the prime minister’s office stated.
Support for fishermen will be increased the most: the fuel subsidy will rise from 25 to 35 cents per liter. For companies in the construction and public works sectors, compensation will amount to 20 cents per liter of diesel fuel for equipment.
For farmers, the 15-cent-per-liter subsidy will continue. This mechanism is also planned to be adapted as part of emergency measures in response to the drought. The fuel subsidy will complement other agricultural support programs.
The decision was made amid protests over the economic situation and rising energy costs. On September 15, labor unions across various sectors in France staged strikes over wage levels and high fuel prices. Energy sector workers reduced electricity production and halted gas transit, while others took to the streets in demonstrations.
It is worth noting that as early as this spring, the French government reported that farmers, fishermen, and transportation companies, in particular, were feeling the greatest pressure from higher fuel prices, as they cannot always quickly pass on the additional costs to consumers.
The extension of aid comes ahead of the presentation of France’s new budget. The government is attempting to simultaneously support the most vulnerable sectors and keep the deficit under control amid a slowdown in economic growth.
Source: Reuters.
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