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FUEL

Who could benefit from France’s planned new fuel subsidy?

Among the key measures discussed during French President Emmanuel Macron's recent TV interview was a new 'fuel cheque' to help drivers deal with rising costs. But who could benefit and by how much?

Published: 25 September 2023 13:53 CEST
French President Emmanuel Macron has announced a new fuel subsidy set to come into effect in 2024. (Photo by Sameer Al-DOUMY / AFP)
French President Emmanuel Macron has announced a new fuel subsidy set to come into effect in 2024. (Photo by Sameer Al-DOUMY / AFP)

French President Emmanuel Macron announced rough plans for a new fuel subsidy, which “could reach up to €100 per year”, to help motorists deal with rising fuel costs. 

The measure is set to be introduced in the 2024 budget, meaning it won’t come into force until next year. Some have estimated it’s likely cost to state coffers to be around €450m – €500m. 

Whilst no details have been officially confirmed French media report that the average qualifying motorist would save €0.20 per litre over a six month period as a result of the new ‘fuel cheques’. 

Who could benefit? 

French media reports, citing sources at the French Finance Ministry Bercy, claim the subsidy – as with the last one introduced in 2023 – will be reserved for people who need to use their car to get to work.

Reports say fuel cheques will only be distributed to the 50 percent lowest earners in France, which likely means individuals who earn less than €1,314 net per month, couples with one child who take in less than €3,285 net per month, families with three children earning less than €5,255 net per month.These income brackets are however susceptible to change. 

The government has yet to release details on how the new fuel cheques can be claimed. But when a similar subsidy was introduced in 2023, individuals could claim their cheque via the online tax portal (impots.gouv.fr) on condition that they provided license registration details and a sworn statement declaring that the vehicle was used for professional purposes. Payments were sent via bank transfer and generally took 8-10 days. 

As the measure would be part of the upcoming budget bill, it would not be handed out to households until 2024.

How is this different from the 2023 fuel subsidy? 

The fuel cheque introduced in 2023 was delivered on a one per household basis. 

But finance ministry sources indicate that the new subsidy will be administered on an individual basis, meaning for a household that has two adults who both use vehicles to get to work, then they can claim the cheque for both vehicles.

Other measures 

As for other government plans to help motorists with rising fuel costs, the Prime Minister Elisabeth Borne has previously said the government would pass legislation to allow fuel distributors to sell at a loss, which is normally outlawed in France due to protection for small and independent businesses.

However, large distributors such as Carrefour, Leclerc, Intermarché, Système U, Casino and Auchan, all refused the government’s plan and said they would not sell fuel at a loss. This includes TotalEnergies, who controls around a third of French fuel stations and had already agreed to cap petrol per litre to €1.99.

In explaining why fuel prices have been rising, Macron said: “We are paying for our dependence. Since the beginning of 2023, the price per barrel of oil has risen around a third and that’s going to continue (…)The increase for this is not tax-related. It has to do with geopolitics.”

READ ALSO: The key points of Macron’s pledges 

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For members

DRIVING

EU countries to extend range of offences foreign drivers can be fined for

The EU has agreed to extend the number of driving offences for which motorists from other member states can be fined for and to make it easier for authorities to chase up the fines and make foreign drivers pay.

Published: 13 May 2024 17:28 CEST
EU countries to extend range of offences foreign drivers can be fined for

In the last voting session of this term, in April, the European Parliament passed new rules to ensure drivers who breach local traffic rules in another EU member state are found and fined.

The cross-border enforcement (CBE) directive was first adopted in 2015 after it was found that non-resident drivers were more likely to commit speeding offences. The European Commission estimated that in 2008, foreign drivers accounted for about 5 percent of road traffic in the EU but committed around 15 percent of speeding offences.

The directive partially improved the situation, but according to the Commission 40 percent of traffic violations committed in other EU countries are still unpunished “because the offender is not identified or because the fine is not enforced”.

In March 2023, the Commission therefore proposed updating existing measures.

New rules extend the type of offences that will trigger assistance from another member state and seek to improve collaboration among national authorities to identify and fine offenders.

The European Parliament and Council agreed in March on the final text of the directive, which is now being formally approved by the two institutions.

André Sobczak, Secretary-General at Eurocities, a group representing European cities in Brussels, said: “While the final outcome of the discussions is not ideal, we are pleased that EU policymakers have at least put the issue of the enforcement of local traffic rules on foreign vehicles on the table. As we approach an election year, I believe such a practical example can demonstrate why a European approach is necessary to address local issues.”

Which traffic offences are covered?

The previous directive covered eight driving misconducts that would require member states to cooperate: speeding, not wearing seat belts, failing to stop at a red traffic light, drink-driving, driving under the effect of drugs, not wearing a helmet (motorcycles / scooters), using a forbidden lane and using a mobile phone or other communication devices while driving.

The Commission proposed to add to the list not keeping a safe distance from the vehicle in front, dangerous overtaking, dangerous parking, crossing one or more solid white lines, driving the wrong way down a one way street, not respecting the rules on “emergency corridors” (a clear lane intended for priority vehicles), and using an overloaded vehicle.

The Parliament and Council agreed to these and added more offences: not giving way to emergency service vehicles, not respecting access restrictions or rules at a rail crossings, as well as hit-and-run offences.

Despite calls from European cities, the new directive does not cover offences related to foreign drivers avoiding congestion charges or low emission zones. In such cases, information about vehicle registration can only be shared among countries with bilateral agreements.

Karen Vancluysen, Secretary General at POLIS, a network of cities and regions working on urban transport, called on the next European Commission to take other local traffic offences, such as breaches of low emission zones, “fully at heart”.

Collaboration among national authorities

For the traffic violations covered by the directive, EU countries have to help each other to find the liable driver. The new directive further clarifies how.

Member states will have to use the European vehicle and driving licence information system (Eucaris) to get the data of the offender.

National authorities will have 11 months from the date of the violation to issue the fine to a vehicle from another EU member state. However, they will not have to resort to agencies or private entities to collect the fine. This was requested by the European Parliament to avoid scams or leaks of personal data.

Authorities in the country of the offender will have to reply to requests from another EU member state within two months.

When the amount of the fine is more than €70, and all options to have it paid have been exhausted, the member state where the violation occurred can ask the country of the offender to take over the collection.

The person concerned will be able to request follow-up documents in a different official EU language.

When will the new rules will be enforced?

Now that the EU Parliament has passed the law, the EU Council has to do the same, although there is no date set for when that will happen. Once the directive is adopted, EU countries will have 30 months to prepare for implementation.

Last year the Commission also proposed a new directive on driving licenses, but negotiations on the final text of this file will only take place after the European elections.

This article has been produced in collaboration with Europe Street news.

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