Fuel tax halted in big U-turn by government

Pressure mounts after yellow vest movement degenerates into street violence

But move fails to appease protesters who call the measure a ‘first step’ and vow to fight on |

French Prime Minister Edouard Philippe announced yesterday new concessions to “yellow vest” protesters, including the suspension for six months of planned tax increases raising the price of fuel.

“No tax merits putting the unity of the nation in danger,” Philippe said in a televised address, adding that the anger on the streets “originates from a profound injustice: of not being able to live with dignity from one’s work”.

He also announced that increases in the cost of gas and electricity, also set to take effect from January 1, would be suspended for three months during the winter months.

Philippe added that a tightening of the technical assessment for cars, which was set to penalise heavily polluting older vehicles, would also be suspended for six months.

The measures are an attempt to take the heat out of antigovernment protests by low-income people in small-town and rural France.

Protests in Paris on Saturday degenerated into some of the worst violence in years in the capital, which saw more than 200 vehicles torched and the Arc de Triomphe vandalised.

Philippe said the protesters and the government shared the same objective — “that work pays” — and acknowledged that France had some of the highest taxes in Europe.

“If taxes fall, public spending must fall,” he said.

Macron silent

Macron has not spoken publicly about Saturday’s destruction in Paris since his return from a G20 summit in Argentina at the weekend.

His only message, published on his official Twitter account on Monday, has been about the need to help handicapped people and their carers, leading to more criticism that he is too aloof. On Monday, he had lunch with police from a Paris barracks that was involved in trying to quell the riots.

The 40-year-old centrist was elected in May 2017 on a probusiness platform that included measures to incite companies to invest to create jobs.

Immediately after coming to power, he pushed through tax cuts for entrepreneurs and highearners. Those measures stirred anger among the “yellow vests” who have blocked highways over the past two weeks.