Former French judge, now a member of the European Court of Auditors, opposes the National Rally’s call for a reduction in fuel taxes, arguing that it would cost “1 billion euros per month” and would be “a counterproductive signal.”
Pierre Moscovici’s warning comes at a time when the conflict in the Middle East is affecting French households’ purchasing power, especially due to the soaring prices at the pump. He highlights the lack of resources for general assistance measures due to the deteriorating state of public finances.
Moscovici points out that Germany’s move to lower fuel prices by 17 cents costs them nearly 2 billion euros and might not be the best approach. However, he acknowledges that Germany still has the means to afford such measures, unlike France.
He criticizes the proposals of both the left-wing party La France Insoumise (LFI) and the National Rally (RN) as inadequate. Moscovici believes that lowering taxes would be costly and counterproductive, encouraging continued use of fossil fuels instead of transitioning towards decarbonization.
While recognizing the negative impact of escalating energy and fuel prices on French wallets due to the Middle East crisis, Moscovici warns of the burden imposed by the energy shield policy implemented since 2021 and strengthened after the conflict in Ukraine began in 2022. He views this as a costly error that primarily benefitted energy providers rather than French citizens, leading to unnecessary strain on public finances.
Moscovici’s insights shed light on the challenges facing France in navigating the complexities of energy policy within the current geopolitical and economic landscape.
