Will we soon be able to shop and see signs advertising 50% off certain fruits and vegetables? This is Bruno Le Maire’s wish. Indeed, the Minister of the Economy wishes to return to the Egalim law, which protects the agricultural sector in normal times.
What is the Egalim law?
This law was adopted in 2018, in a low inflationary context. It simply frames the promotions made by supermarkets. Since this law, the latter are capped at 34% in value, and 25% in volume, for food products. Why such a law? The goal is simple. This law exists to protect the agricultural sector against too low selling prices imposed by large retailers.
Today, Bruno Le Maire wants to review this law. Due to the dramatic rise in price, he thinks now is the time. In any case, this is what he said last Monday, July 4, at the microphone of France Inter:
” Today, promotions cannot exceed 34% discount in mass distribution, I propose that we raise this threshold to 50% so that there are discount prices for all those who need it.“.
Signs are already slashing prices
To help consumers, major retailers are offering welcome nudges. Promotions, cut prices, additional offers for consumers who have the loyalty card… Rarely have we seen so many promotions. But this is part of a particular context. That of record inflation.
Since the beginning of the year, prices have continued to rise. Each month, several tens of cents are added. Enough, after six months of inflation, to considerably increase the average shopping basket. And unfortunately it does not work out. Economists are formal. The peak of inflation should not be reached before 2023. Enough to fear the worst for the last six months of the year.
Some are already talking about inflation rising by 10% by the end of the year holidays. That wouldn’t be surprising. Indeed, France is certainly affected, but much less than other countries. France, with its 6%, pales in comparison to certain countries. In Venezuela, Sudan, Zimbabwe, Turkey, Yemen or Argentina, the price increase is between 50% and… 500%.
The offers proposed to fight against inflation
»Due to the exceptional inflationary context that we are experiencing, the increase in the budget of each French consumer is estimated at 224 euros for 2022. It is our responsibility, as a distributor, to accompany and support our customers in this period of upheaval. which have a strong impact on their wallets“, explains Vincent Bronsard, president of Intermarché and Netto, quoted by LSA.
Thus, in this period of sales, it is also promotions that are made on the side of the major brands. It must be said that the French badly need it. A recent study has shown that, on average, 490 euros to the French to live decently. An increase of 23 euros compared to the previous year. And obviously, it’s a sad record that falls.
For its part, the government is also setting up a series of aids for the most precarious. Pensions and the activity bonus increase, from this summer, by 4%. APL, for their part, increased by 3.5%. But this increase does not please some French people who point to a certain hypocrisy on the part of the government..
” After lowering the #APLs by €5, having under-indexed them from 2018 to 2020 and having reduced the allocation of low-income tenants by €1.1 billion in 2021, Bruno Le Maire announces a “revaluation” of the APLs by 3.5%, around €168 million“, can we read in particular on Twitter.
François Ruffin does not mince his words following the announcement made by Bruno Le Maire: ” Since 2017, Macron has scratched a billion euros on the APL to finance his abolition of the ISF. This morning Bruno Le Maire, very happy, offers a gift of 168 million for the tenants. They give us crumbs. And besides they don’t care about us“.