Following the social unrest driven by “Gilets Jaunes” movement since the end of 2018, the French Government has taken many fiscal and social measures to provide a solution to the economic difficulties faced by many French households.
As a reminder, these measures were relating to, among other things, the increase in the activity premium and the increase in the number of beneficiary households, the increase in the legal minimum wage, the tax exemption on overtime, the reduction in the rate of the housing tax, etc.
Following the implementation of all these measures, the National Institute of Statistics and Economic Studies (INSEE) has undertaken studies to assess their real impact on the daily lives of French households. According to these statistical studies of INSEE, the purchasing power of the French should increase significantly for the year 2019, compared with the year 2017. The INSEE estimates at 2% this increase for the middle classes and to 4.2% for active people.
However, these measures, whose effectiveness seems to be confirmed by the economic forecasts of the INSEE, did not bring down the tension in the streets. The demonstrations continue to take place mainly in the city of Paris and during the National Day celebration on July 14, protesters have again caused disturbances to public order.
The government has promised to continue taking measures to increase purchasing power. Stay tuned with Exports News for more information on this developing story.