France protests: Fuel tax rises in 2019 budget dropped

12/5/18
 
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from BBC,
12/5/18:

Fuel tax rises which sparked weeks of violent protests in France have now been dropped from next year’s budget, the government has announced.

The move was announced by Prime Minister Edouard Philippe, who a day earlier had only promised to postpone them for six months.

The “gilets jaunes” (yellow vest) protests have hit major cities over the past three weekends.

Further demonstrations were planned for this weekend.

They have grown to reflect more widespread anger at the government.

Why the widespread anger?

Mr Macron was elected on a platform of economic reform which would improve the lives of French people via lower unemployment and a kick-started economy.

But many feel that has not emerged. An analysis of the 2018-19 budget carried out by France’s public policy institute, for example, found that incomes for the poorest quarter of households would largely drop or stay the same under the plans. Middle-income earners would see a modest bump – but the greatest beneficiaries would be those who were already wealthy, in the top 1%. The pattern is worse for retired people – almost all of whom will be worse off.

Who are the protesters?

The “gilets jaunes” movement began as a protest against a rise in duties on diesel, which is widely used by French motorists and has long been less heavily taxed than other types of fuel.

Protesters say Mr Macron is out of touch, particularly with non-city dwellers who rely on their cars.

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