French emergency plan to boost purchasing power, study shows

PARIS – A French watchdog study shows that emergency measures announced by French President Emmanuel Macron as a response to the yellow vest protests will boost the purchasing power in the country this year.

The Institute of Public Policies estimated Thursday that purchasing power will increase by an average of 0.8 per cent and benefit mostly low-income workers.

Emergency measures will cost France an additional 8.3 billion euros compared to the previously-approved budget, according to the government estimates.

Yellow vest demonstrators have been denouncing Macron’s economic policies for weeks, which they see as favouring the rich.

The government sought to appease protesters with a package of measures last month that includes a state-funded, 90-euro monthly bonus ($102) for workers earning the minimum salary and tax cuts on overtime hours and modest pensions.