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LIVING IN FRANCE

Property taxes, food and tunnels: 6 essential articles on life in France

From tax hikes to the price of food, air conditioning and the unexpected things that lurk beneath the streets of Paris, here are 6 essential articles for life in France.

Property taxes, food and tunnels: 6 essential articles on life in France
Life in France isn't all loitering on the balcony watching cycle races. Photo by Marco BERTORELLO / AFP

As the inhabitants of Paris, one of Europe’s most densely populated cities, walk along the Champs-Elysées or Rue de Rivoli, they might be entirely unaware of the extensive underground world that exists below their feet.

Paris has a huge network of underground spaces that hide some very unexpected things (as well as the entirely prosaci Metro).

Skulls, beer and a ‘cathedral’: Discover the secrets of underground Paris

From cheese and garlic to berets and sex, taxes and striking, France is heavily loaded with cultural stereotypes – and most of them are only partly accurate.

This is us, busting more myths.

Myth-busting: Are these 12 clichés about France actually true?

France warned that companies might have to reduce energy this winter as Russian continues to reduce its gas supplies to Europe.

The government has already begun work on an energy-saving plan, with more measures to come in September.

And it’s not the only country thinking along these lines – from limits to heating and air conditioning to turning off the lights and taking off ties, here’s how countries around Europe are cutting their energy usage.

Air-con, lights and ties: How countries around Europe hope to avoid blackouts this winter

Although householders in France are relatively fortunate when it comes to rising bills, there is one notable exception.

Towns and villages across France have been raising property tax rates for second-home owners – with many areas voting for the maximum 60 percent increase.

Tax hikes of up to 60% for French second home owners

As we’ve stumbled onto money matters, let’s consider the cost of living. France has many temptations to woo visitors and foreign residents: its scenery, history, the lifestyle, the food and the drink.

While some things here are more expensive than elsewhere – we’re looking at you, second-hand car dealers – and the taxes are notoriously high, what about the cost of groceries and wine? How do they compare? We do something that looks a lot like crunching the numbers…

How expensive is food and drink in France?

But, enough of all that seriousness. It’s silly season, after all. Prominent French scientist Etienne Klein has had to apologise for claiming this was the latest astonishing picture taken by the James Webb Space Telescope, when it was – in fact …

French astronomer apologises for ‘stellar’ photo that was really . . . chorizo

Some people take things far too seriously.

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POLITICS

Income tax, property grants and cigarettes: What’s in France’s 2023 budget?

France's finance minister has unveiled the government's financial plans for the next year, and says that his overall aim is to 'protect' households in France from inflation and rises in the cost of living - here's what he announced.

Income tax, property grants and cigarettes: What's in France's 2023 budget?

The 2023 Budget was formally presented to the Council of Ministers on Monday, before economy minister Bruno Le Maire announced the main details to the press. 

The budget must now be debated in parliament, and more details on certain packages will be revealed in the coming days, but here is the overview;

Inflation – two of the biggest measures to protect households from the rising cost of living had already been announced – gas and electricity prices will remain capped in 2023, albeit at the higher rate of 15 percent, while low-income households will get a €100-200 grant. The energy price cap is expected to cost the government €45 billion in 2023.

EXPLAINED: What your French energy bills will look like in 2023

Property renovations – the MaPrimeRenov scheme, which gives grants to householders for works that make their homes more energy-efficient, will be extended again into 2023, with a budget of €2.5 billion to distribute.

Income tax – the income tax scale will be indexed to inflation in 2023, so that workers who get a pay increase to cope with the rising cost of living don’t find themselves paying more income tax. “Disposable income after tax will remain the same for all households even if their salary increases,” reads the 2023 Budget.

Pay rises –  pay will increase for teachers, judges and other civil servants as inflation is forecast to reach 4.3 percent next year after 5.4 percent in 2022. Around €140 million is assigned to increase the salaries of non-teaching staff in schools. 

New jobs – nearly 11,000 more public employees will be hired, in a stark reversal of President Emmanuel Macron’s 2017 campaign promise to slash 120,000 public-sector jobs – 2,000 of these jobs will be in teaching. 

Small business help – firms with fewer than 10 employees and a turnover of less than €2 million will also benefit from the 15 percent price cap on energy bills in 2023. The finance ministry will put in place a simplified process for small businesses to claim this aid. In total €3 billion is available to help small businesses that are suffering because of rising costs. 

Refugees – In the context of the war in Ukraine, the government plans to finance 5,900 accommodation places for refugees and asylum seekers in various reception and emergency accommodation centres. The budget provides for a 6 percent increase in the “immigration, asylum and integration” budget.

Cigarettes – prime minister Elisabeth Borne had already announced that the price of cigarettes will rise “in line with inflation”.

Ministries – Le Maire also announced the budget allocation for the various ministries. The Labour ministry is the big winner with an increase of 42.8 percent compared to last year, coupled with the goal to reach full employment by 2027. Education gets an increase of €60.2 billion (or 6.5 percent more than in 2022), much of which will go on increasing teachers’ salaries, while the justice and environment ministries will also see increased budgets.

Conversely, there was a fall in spending for the finance ministry itself.

Borrowing –  the government will borrow a record €270 billion next year in order to finance the budget. “This is not a restrictive budget, nor an easy one – it’s a responsible and protective budget at a time of great uncertainties,” said Le Maire. 

The government is tabling on growth of one percent, a forecast Le Maire defended as “credible and pro-active” despite an estimate of just 0.5 percent GDP growth by the Bank of France, and 0.6 percent from economists at the OECD.

The public deficit is expected to reach five percent of GDP, as the EU has suspended the rules limiting deficit spending to three percent of GDP because of Russia’s war against Ukraine.

Parliament

The budget plans now need to be debated in parliament where they are likely to face fierce opposition. Emmanuel Macron’s centrist LREM party and its allies lost their majority in elections earlier this year.

Macron also plans to push ahead with a pension reform that would gradually start pushing up the official retirement age from 62 currently, setting up a standoff with unions and left-wing opposition parties.

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