The left wants to block prices, the far right wants to lower VAT. The current centrist majority believes that prices will fall anyway.
3 blocks, 3 schools. Guests of BFM TV this Monday, Eric Coquerel (LFI – Nouveau Front Populaire), Roland Lescure (Renaissance – Ensemble), and Jean-Philippe Tanguy (RN) discussed their respective proposals in the field of energy.
A relatively dated debate, since inflation has returned to a target level in recent months in Europe, around the 2% mark targeted by the European Central Bank. Prices increased by 2.3% in May, after 2.2% in April. Energy rebounded to 5.7% at an annual rate (it was 3.8% in April), but for reasons more statistical than political (through a so-called “base” effect, prices had fallen significantly between April and May 2023, which creates a false acceleration effect).
An observation noted by Roland Lescure, who emphasizes that prices should fall by 15%.
The electricity market is returning to normal, EDF prices are falling. We have price drops everywhere. We will be able to continue to lower energy prices, thanks to EDF, thanks to renewables.”
But Renaissance is maintaining its 10% energy tax – the excise on electricity – passed in February, which has inflated bills.
Reducing VAT, effective or expensive?
Opposite, the RN defends exit from the European market. “The French price is much lower than the European price” recalls Jean-Philippe Tanguy. “And without this tax, we could talk about a 25% reduction.”
It also encourages the reduction of VAT on energy, which would make it possible to lower prices, since the goods concerned (gasoline and electricity in particular) are competitive: if a reduction in VAT is ineffective on catering, for example example (restaurant owners increase their margins by leaving prices unchanged), Jean-Philippe Tanguy believes that consumers will be able to choose brands that play the game.
He takes as a reference a “study carried out in Portugal”, indicating the effectiveness of this measure. Lisbon has in fact reduced VAT from 13 to 6% on energy, even reducing it to 0% for 45 food items. But the elected RN does not cite his sources. In addition, the VAT reduction only applied temporarily – barely one year – in a period of strong instability. Transposition to France therefore seems difficult.
Eric Coquerel and the left defend the reduction in VAT, on condition of blocking prices, a measure present in the program of the New Popular Front:
We must cancel the tax which is planned, it is 200 euros for a household of 4 people. To suggest that the energy crisis is over is counterproductive. We must also block prices, because without blocking prices, distributors’ margins increase, and employees pay the inflation” notes Eric Coquerel.
Roland Lescure also underlines the cost of the VAT reduction: 18 billion according to Renaissance figures – it is 12 billion according to the RN.
