France to extend help with energy costs for small firms

Bloomberg

France will extend aid for small and mid-sized companies struggling with surging energy costs until the end of the year, Finance Minister Bruno Le Maire told business leaders.
The government will also loosen the conditions for firms to request financial help from the 3 billion-euro ($3 billion) fund, Le Maire said.
“At the heart of our policy is absorbing the inflationary shock for citizens,” Le Maire said. “We will simplify and lighten the criteria for all small and medium-sized enterprises that need public support to pay their electricity or gas bills.”
The minister called on companies, administrations and citizens to reduce energy consumption wherever possible, adding that rationing would only be a last resort. The government was preparing for a possible worst-case scenario where Russia cuts off gas completely and the winter is cold.
“It’s because I don’t want to penalize the French economy that we must be careful of energy consumption right now,” Le Maire said.
Most strategic sectors will have to be shielded from gas and power shortages, the minister said. Energy savings could start with a reduction in the heating of commercial and
government buildings.
Energy prices, including gas prices, will probably continue to rise, he said, and the government will take decisions in the coming days to find a way of limiting increases when caps
expire at the end of this year.
“The strategic choice we have made is to smooth the impact of inflation on citizens,” Le Maire said. “There will be a smoothing out done in a gradual way to contain the increases.”
Le Maire reiterated his opposition to windfall taxes on bumper profits, calling on companies to make renewed efforts to help households directly. The minister planned to ask banks again to reduce fees and insurers to limit increases in premiums.
He also stuck to a forecast for 2.5% economic growth in France this year, and said: “French growth is solid, it’s resisting and the fundamentals of the economy are good.”