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France faces higher energy bills as it prepares to end price caps
Ross Cullen in Paris
Europe;France
Power-generating windmill turbines and the church of the village are pictured during sunset at a wind park in Bethencourt, France. /Pascal Rossignol/Reuters

Power-generating windmill turbines and the church of the village are pictured during sunset at a wind park in Bethencourt, France. /Pascal Rossignol/Reuters

The tariff shield in France to limit the effects of inflation will not stay in place indefinitely. Olivier Veran, politician and official government spokesperson warned on Wednesday that "at the beginning of next year, there may be increases that will be put on the table."

"The government will not be able, because the public debt is something that matters to the French and forces us to make choices, to freeze prices indefinitely," said Veran. He was speaking following the first cabinet meeting after France's traditional summer recess.

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Veran said ministers were "calling for the unity of the nation" in facing up to the crises in the country, namely the ongoing impact of the conflict in Ukraine, and the environmental problems related to a summer of record-breaking drought, prolonged heatwaves, and widespread forest fires.

 

'A big shift'

French President Emmanuel Macron opened the cabinet meeting, which he chaired at the presidential office in Paris, with a series of remarks about the economic, political, environmental and global situation.

"It's a big shift that we are going through," warned the French president, saying it was a time of great upheaval that marked "the end of abundance... and carefreeness."

He noted what he called "the rise of illiberal regimes" and "the strengthening of authoritarian regimes," in a remark pointed at Russia following its military campaign in Ukraine.

From immigration to education, and from the cost-of-living crisis to the ongoing war in Ukraine, there were a lot of items on the agenda for the meeting of ministers, with the government expected to set out a policy drive in the coming months.

 

Energy tariff freeze to end

France's energy tariff shield, which has capped gas and electricity prices, is temporary, and will come to an end later this year, according to the government's timetable. The price cap could be replaced by more targeted aid for low-income people.

A clampdown on private jet flights was proposed by France's transport minister earlier in the week and the issue came up at Wednesday's cabinet meeting. Olivier Veran said a private jet ban was not going to "recool the planet" but he called for European dialogue and consultations on possible increased regulation of the personal-plane sector.

And from next week, the prime minister will launch the preparation of the new national climate change adaptation plan. The aim of this measure is to strengthen protections against extreme weather events that will intensify in the future.

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