France presses energy, shipping firms to ease inflation pain
Reuters
Published Jun 29, 2022 03:14AM ET
Updated Jun 29, 2022 07:21AM ET
PARIS (Reuters) -French Finance Minister Bruno Le Maire on Wednesday put fresh pressure on the country's biggest energy and shipping companies to use part of bumper profits to help customers cope with high inflation.
While eroding households' purchasing power, the current energy price shock is fuelling record profits at some firms, prompting some governments to impose a windfall tax, such as Britain has done on gas and oil producers.
France has so far eschewed that path, urging companies instead to take steps that reduce prices for customers while leaving the threat of a windfall tax on the table.
"A small number of companies have during the crisis made profits in sectors such energy or transport ... I want them to give me strong proposals so that they give back a part of their profits to the French people," Le Maire told C News TV.
"This can take the form of rebate on fuel prices or proposals by transport firms like CMA-CGM. If they choose against not doing more, we will take our responsibilities," he added.
On Monday, Le Maire called on energy giant TotalEnergies, which analysts expect on average to report net income this year of nearly 29 billion euros according to Refinitiv, to extend and increase rebates at the pump.
It has already offered a 10 euro cent rebate until the end of August, in addition to an 18 cent rebate from the state, which Le Maire has offered to keep in place until the year end.
A Finance Ministry source said that Le Maire has also asked shipping giant CMA-CGA, which is privately controlled by the Saade family, to reduce the cost of transporting materials used by the construction sector and had also asked banks and insurers to help their clients cope with inflation.
Another ministry source said that while a windfall tax did not sit well with the government's commitment refrain from adding France's already high tax burden, they were not entirely closed to the idea if firms did not take action.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.