Major Changes in France Starting July
Gas Prices Surge
Starting July 1, French residents will see a significant increase in gas prices. The benchmark gas price will rise by 11.7%, translating to an average annual bill increase from 1,060 euros to 1,184 euros. This hike is due to the new tariff for natural gas distribution networks and the rising wholesale prices of natural gas. Although suppliers have the freedom to pass on this increase to consumers, most customers are expected to feel the impact.
New Savings Plan for the Youth
A new climate savings plan aimed at individuals under 21 will be introduced on July 1. This plan, which can be opened from birth, is designed to finance low-carbon projects such as wind power and photovoltaics. The maximum ceiling for this savings product is set at 22,950 euros, and its returns, which are not guaranteed, are net of tax. The initiative aims to mobilize the savings of young people in favor of the ecological transition.
Transparency in Supermarket Pricing
From July 1, supermarkets larger than 400m² will be required to label or post information on products affected by 'shrinkflation'. This practice involves reducing the quantity of a product without reducing its price, or even increasing it. Stores failing to comply with this new regulation could face fines of up to 3,000 euros for individuals and 15,000 euros for legal entities.
Changes in Real Estate Energy Performance
The energy performance diagnosis (DPE) for homes under 40m² will be updated starting July 1. This change is expected to remove around 140,000 properties from the 'energy sieves' category, which is associated with rental bans. DPEs conducted between July 2021 and July 2024 for affected homes may be updated to reflect the new energy label.
Unemployment Benefits and Insurance Adjustments
Unemployment benefits will see a 1.2% increase from July 1, benefiting around two million people at a total cost of 150 million euros. Additionally, the 'attack' tax on insurance contracts will increase slightly, from 5.9 to 6.5 euros annually, to support the guarantee fund for victims of terrorism and other offenses.
New Vehicle Safety Regulations
New vehicles registered from July 1 must be equipped with an 'intelligent speed adaptation' (AIV) system to enhance road safety. This system reads road signs and uses GPS to compare the vehicle's speed with the maximum authorized speed, alerting the driver if they exceed the limit.
Tax and Sales Adjustments
The online service for correcting income tax declarations will open on July 31 and remain available until December 4. Additionally, summer sales in mainland France will continue until July 23, with varying dates for overseas departments.
- The increase in gas prices is part of a broader trend in energy cost adjustments that have been ongoing for several months. While this latest hike is significant, it follows a series of price decreases earlier in the year, according to Emmanuelle Wargon, president of the Energy Regulatory Commission (CRE).
- The climate savings plan is part of a larger effort by the French government to involve younger generations in the ecological transition. By offering potentially higher returns than traditional savings accounts, the government hopes to incentivize investment in sustainable projects.
- The new labeling requirement for shrinkflation in supermarkets is a consumer protection measure aimed at increasing transparency. By informing customers about changes in product quantities without corresponding price reductions, the government aims to empower consumers to make more informed purchasing decisions.
- The adjustment to the energy performance diagnosis (DPE) for smaller homes is intended to alleviate some of the pressures in the real estate market. By removing properties from the 'energy sieves' category, more homes will be available for rent, potentially easing housing shortages.
- The increase in unemployment benefits is the third adjustment in two years, reflecting ongoing efforts to support job seekers. The slight increase in the 'attack' tax on insurance contracts is aimed at maintaining the financial stability of the guarantee fund for victims of terrorism and other offenses.
- The intelligent speed adaptation (AIV) system in new vehicles is part of a broader European regulation aimed at reducing road accidents. By ensuring that vehicles adhere to speed limits, the system is expected to enhance road safety significantly.
- The correction service for income tax declarations provides a crucial opportunity for taxpayers to rectify any errors or omissions in their filings. This service is particularly important for those who have declared their income online, as it offers a convenient way to ensure accuracy in tax reporting.
