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France Expands Energy Aid to 700K More Households

Bloomberg Markets •
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French Prime Minister Sebastien Lecornu announced that 700,000 additional households will receive energy assistance payments this year, expanding the program to 3.8 million beneficiaries. The government identified these extra recipients, who will receive checks averaging €153 ($176) each.

This brings the total cost to €600 million for the state. The energy aid mechanism, which has existed since 2018, helps low-income families cope with energy bills by directly reducing electricity, gas, or heating oil costs. Lecornu emphasized the program's role in supporting purchasing power during inflationary pressures.

The expansion comes as France faces political pressure to address rising fuel costs amid surging oil prices due to Middle East tensions. However, the government remains cautious about new spending after 2022's extensive energy support measures contributed to a significant budget deficit. On Friday, the finance ministry announced €70 million in temporary fuel support for specific industries including road freight, farmers, and fishing.