France will take measures such as freezing fiscal spending to address rising energy costs

The French government announced on the 21st that it plans to freeze about 6 billion euros in fiscal spending by 2026 to ease the pressure that the fighting in the Middle East is placing on the French economy, while also rolling out a new round of aid measures focused on industries and groups hit more severely by the rise in fuel prices. The Minister of the Economy and Finance of France, Roland Lescure, said that since the situation in the Middle East escalated, France’s public finances are expected to face an additional burden of between 4 billion and 6 billion euros due to rising energy prices combined with higher government bond yields. The government will address this through spending controls and targeted energy support measures. The French prime minister, Lecorne, said the government will extend existing aid policies for agriculture, fisheries, and the road transport sector and will introduce special subsidies for specific drivers. Since the fighting in the Middle East broke out in late February, fuel prices in France have continued to rise. According to a report by France’s BFM TV business news channel, in March, French gasoline prices rose by 10.7% and diesel prices increased by 21.3%. At present, France has not cut fuel taxes, and instead is prioritizing fiscal resources to support the industries most affected by the impact. (Xinhua News Agency)