The conflict with Iran is raising the spectre of excessive energy price increases, with European citizens set to be the first victims. Jordan Bardella, president of the Rassemblement National (RN), is calling on France and the European Union to adopt a vigorous policy to mitigate the effects of the looming new energy crisis.
The war launched by the United States and Israel against Iran has had the almost immediate effect of raising gas and oil prices. The reference price for European gas soared by more than 30% in a single day, while oil prices in London and New York jumped by 6-7%.
Jordan Bardella therefore reiterated his party’s repeated proposal for political action at both the European and the national level to limit the effects of the increase. At the European level, he is calling for the immediate suspension of the rule setting electricity prices, which currently indexes them to gas prices. At the national level, the RN is calling for a reduction in taxes on petroleum products (excise duty on petroleum products, formerly known as TICPE, and VAT) in order to ease the burden on consumers: “It would be unacceptable for the state to enrich itself at the expense of the French people by taking advantage of the international crisis,” Bardella argued.
Currently, in France, the VAT rate applied to fuel oil and gas is 20%. The RN is calling for the reduced VAT rate of 5.5% to be applied. Furthermore, after having long called for France to leave the European electricity market, the RN, which has now given up on this, is calling for the introduction of a ‘French electricity price,’ considering it abnormal that the French, who can benefit from low-pollution and cheap nuclear energy, often pay a higher price for electricity under the harmonised tariff rules imposed by the European Union, which were set up to guarantee a certain stability in costs regardless of fluctuations in supply, demand, and production.
The government has chosen to dismiss the RN’s suggestion to lower taxes, deeming it “hasty,” “politicised” and ultimately “inconceivable.” In reality, the reasons that lead ministers and senior officials to reject the reduction are often ideological: the loss of revenue for the state would impact investments in the famous ‘energy transition’; the reform would benefit the wealthiest households, those that consume the most energy—overlooking the fact that the entire population would benefit from regaining purchasing power.
Similarly, the proposal for a ‘French electricity price’ to be negotiated at the European level is considered unrealistic by energy sector specialists, as it could lead EDF to block the average price per megawatt hour at a rate that would not allow it to recoup its costs. But the ultimate reason remains political: France has no room for manoeuvre in this area in the face of European Union requirements. “The European electricity market is part of EU law. A unilateral change would therefore be incompatible with the rules of the single market,” Le Figaro points out.
The obstacles highlighted in the energy dossier are therefore ultimately motivating the RN’s political fight against obstacles at the European level, the harmful consequences of which are borne by French citizens.
Unable to change the energy market framework, the French government is trying to reassure citizens with soothing communications. “There is no risk of supply shortages in the coming weeks, either for petrol or gas,” explained Roland Lescure, minister for the economy and energy sovereignty. “We are not at all in the same situation as in 2022,” he insisted, echoed by government spokeswoman Maud Brégeon. The minister also announced a meeting of G7 finance ministers under the French presidency to convey the message that the situation is under control. For now.
