The French government is set to implement significant changes beginning March 1, 2025, impacting daily life and finances for millions of citizens. From increased aviation taxes to alterations in public assistance programs, these new measures are expected to echo across various sectors.
One of the most notable changes includes the simplification of the application process for the Revenu de solidarité active (RSA) and the activity bonus. According to Catherine Vautrin, the Minister of Labour, Health, Solidarity, and Families, "La déclaration de ressources simplifiée, ou solidarité à la source, s’appliquera partout en France, y compris dans les départements et régions d’outre-mer". This new process will require approximately six million French citizens to validate pre-filled declarations on the Caisse d’Allocations Familiales (Caf) website, aiming to reduce the number of individuals missing out on these benefits.
While some will enjoy eased access to financial support, air travelers should prepare for higher costs. The recently adopted financial law will increase the Taxe de Solidarité sur les Billets d’Avion (TSBA), often referred to as the Chirac tax. For example, flying business class within Europe will incur an additional charge of 30 euros. This tax varies depending on flight destination and class of travel, potentially adding significant amounts to the total cost of travel.
For homeowners considering the installation of gas boilers, bad news awaits. Starting March 1, the VAT rate on these installations will increase from 10% to 20%, resulting in higher installation costs—approximately 500 euros more than before. This measure focuses on promoting energy transition but may be burdensome for many households.
The tightening of the malus CO2 is another regulatory change expected to impact consumers. From March 1, vehicles emitting more than 113 grams of CO2 per kilometer will incur penalties, compared to the previous threshold of 118 g/km. This increased tax correlates with the vehicle’s emission level, prompting consumers to opt for more environmentally friendly options.
On the public services side, civil servants will also feel the sting of new policies. Compensation during sick leave will be reduced from 100% to 90% of their salary during the first three months of absence, which could significantly affect many public sector employees. For example, civil servants earning the average public wage of 2,431 euros could lose 235 euros per month during sick leave, creating financial strain during already challenging times.
There are changes to policies affecting small business owners as well. The proposed reduction of the VAT exemption threshold for auto-entrepreneurs, which had been scheduled, is now postponed, allowing independent workers some reprieve as the government seeks to engage in discussions with various industry associations. This delay provides temporary relief for those who would have faced immediate challenges through raised taxation.
Meanwhile, some smokers might find silver linings as select cigarette prices will see decreases starting March 1, following prior increases. Some varieties, including Camel Filters and Winston cigarettes, will now retail for 10.40 euros per pack, down from previous prices, though these adjustments only affect limited brands.
The media sphere will also undergo changes, with the channels C8 and NRJ12 ceasing operations and being replaced by Gulli and LCP Public Sénat. This programming shift is likely to impact media consumption for many viewers.
Lastly, significant changes will occur locally, such as the introduction of paid parking systems in Vannes’ Nord-gare district. Starting March 1, residents will be required to pay for street parking, which has raised concerns among school staff at the local Brizeux school, who will have to pay for monthly permits. François Ars, the deputy mayor, noted, "C’est une demande d’une grande partie des riverains, qui par ailleurs bénéficieront d’un tarif annuel de 30 €", presenting the reasoning behind this new parking policy.
These measures reflect the French government's efforts to navigate economic pressures, promote environmental responsibility, and reform public spending. While the government aims for improvements, citizens must brace themselves for the financial implications these changes will bring, highlighting the need for discussions around their impact and future adjustments.