Rajan Wilcox
In 2018, the French government faced widespread protests against the planned increase in fuel taxes, particularly from supporters of the 'gilets jaunes' or 'yellow jackets' movement. The tax increase was meant to be implemented in January 2019 but was scrapped by President Emmanuel Macron in the face of escalating protests. The French government had planned to wean the country off fossil fuels via small but regular tax increases. However, critics argued that the tax increase would disproportionately affect people in rural areas and lower-income families, who rely more on vehicles for work and transportation. While France has some of the highest fuel taxes in the European Union, with taxes accounting for 64% of unleaded petrol prices and 59% of diesel prices, the specific amount by which the taxes were to be increased is unclear.
| Characteristics | Values |
|---|---|
| Date of planned tax increase | 1 January 2019 |
| Carbon tax in 2018 | €39 |
| Carbon tax in 2019 | €47.5 |
| Increase in diesel tax | 7.60 cents per litre |
| Increase in petrol tax | 3.90 cents per litre |
| Share of tax in unleaded petrol prices | 64% |
| Share of tax in diesel prices | 59% |
| Protests against the tax increase | Yellow jackets movement |
| Supporters of the yellow jackets movement | 72% of people in France |
| Government response to protests | Scrapping the tax increase |
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What You'll Learn
France's fuel tax protests
In 2018, France witnessed a wave of protests sparked by a planned increase in fuel taxes, commonly referred to as the "gilets jaunes" (yellow vests) movement. The protests began online and quickly spread across the country, with demonstrators blocking major roads and holding rallies in cities like Paris. The movement's core demand was to halt the planned fuel tax hikes and implement measures to improve purchasing power.
The French government, under President Emmanuel Macron, initially intended to raise fuel taxes as part of its commitment to reducing fossil fuel reliance and promoting eco-friendly alternatives. The carbon tax, introduced in 2014, was set to increase from €39 in 2018 to €47.5 in 2019. Additionally, the diesel tax rose by 7.6 cents per litre, while petrol tax increased by 3.9 cents per litre. These taxes represented a significant portion of the total fuel price, with taxes accounting for 64% of unleaded petrol and 59% of diesel costs in France.
The "gilets jaunes" protesters argued that the tax increases would disproportionately affect low-income individuals, particularly those in rural areas who depend on their vehicles for work and transportation. They believed that the burden of the tax hikes fell more heavily on them compared to wealthier city dwellers who had better access to public transportation. The protests reflected a broader discontent with rising living costs and the perception of increasing government intervention in people's lives.
Faced with widespread demonstrations and concerns about social unrest, President Macron's administration ultimately decided to scrap the planned fuel tax rise. In December 2018, the French government announced that the fuel tax increase would be removed from the 2019 budget. This decision marked a significant concession by the government to the demands of the "gilets jaunes" movement and an attempt to ease tensions and preserve citizens' purchasing power during the country's ecological transition.
The protests in France against fuel tax hikes highlight the complexities of implementing environmental policies that aim to reduce fossil fuel consumption. While the French government's initial intention was to encourage the use of more fuel-efficient vehicles and reduce carbon emissions, the planned tax increases sparked a broader debate about social inequality and the financial burden on citizens. The French experience offers insights into the challenges of balancing environmental goals with the economic concerns of citizens, particularly those from lower-income backgrounds.
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Macron scraps fuel tax rise
In 2018, French President Emmanuel Macron scrapped a planned fuel tax rise following weeks of nationwide protests and rioting in Paris. The protests, led by the gilets jaunes (yellow vests) movement, argued that the tax increase would disproportionately impact those in rural areas, as well as lower-income families. The movement gained widespread support, with polls reflecting that 72% of people in France supported the gilets jaunes, despite not condoning the violence.
Macron's decision to scrap the fuel tax rise came after three weeks of violent protests that caused four deaths and injured hundreds. The protests also resulted in burned cars, shattered windows, and damage to the Arc de Triomphe in Paris. The French government initially attempted to quell the protests by freezing the fuel tax rise for six months, but this only spurred more groups to join the demonstrations.
The fuel tax rise was part of Macron's efforts to reduce France's reliance on fossil fuels and combat climate change. However, critics argued that Macron's decision to scrap the tax increase was a surrender that came too late and would not quell the mounting anger towards the president. They believed that Macron was out of touch with the problems of ordinary people, particularly regarding the combination of low wages, high taxes, and high unemployment.
The decision to scrap the fuel tax rise had ramifications beyond France, as it was a blow to broader efforts to fight global warming and served as a warning to other world leaders attempting to implement similar measures. Macron's government faced criticism for its initial response to the protests, with the president refraining from speaking publicly and largely remaining in his palace.
In conclusion, Macron's decision to scrap the fuel tax rise in the face of widespread protests and violence was a significant development in French politics. It highlighted the tensions between the government and citizens over economic and environmental policies and the perceived disconnect between Macron and the struggles of ordinary people. The decision also had broader implications for efforts to address climate change and the challenges faced by leaders in implementing related policies.
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The carbon tax
However, the planned increase in the carbon tax sparked widespread protests in France, particularly from the "gilets jaunes" or "yellow jackets" movement. The protesters argued that the increase in fuel taxes would disproportionately affect people in rural areas, lower-income families, and those who rely on their vehicles for work and transportation. In response to the protests, the French government, led by President Emmanuel Macron, decided to scrap the planned increase in the carbon tax for the year 2019.
The French government's decision to cancel the carbon tax increase was influenced by the social movements and protests that gripped the country at the end of 2018. The "gilets jaunes" movement, which started as a protest against rising fuel prices, gained significant support, with polls indicating that 72% of people in France supported the movement's goals, even if not the violence. The protests blocked major roads and turned violent in some of Paris' fanciest neighborhoods.
The French government recognized the need to balance the ecological transition to cleaner fuels with the purchasing power of citizens. While the carbon tax increase was intended to reduce carbon emissions and promote decarbonisation, the government sought to find alternative solutions that would not place a financial burden on the public. The decision to scrap the carbon tax increase was a significant U-turn for the Macron administration and highlighted the challenges of implementing climate change policies while considering the economic impacts on citizens.
In conclusion, the carbon tax in France aimed to address the country's environmental and climate goals by reducing greenhouse gas emissions and encouraging the use of more fuel-efficient vehicles. While the French government initially planned to increase the carbon tax gradually, the backlash and protests from the public led to a reassessment of this policy. The government's decision to scrap the carbon tax increase for 2019 demonstrated the delicate balance between environmental objectives and the economic concerns of citizens.
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The diesel tax
In 2018, the price of diesel in France increased by 15.7% compared to 2008 prices. While higher oil prices and distribution and refining were responsible for most of this increase, taxes still accounted for 44% of the increase in diesel prices.
In France, fuel taxes are among the highest in the EU, with 64% on unleaded petrol and 59% on diesel. In 2018, the French government planned to further increase taxes on petrol and diesel, which sparked the "gilets jaunes" (yellow vests) protest movement. The movement began online as a protest against rising fuel prices but spread to include people angry about higher living costs. Demonstrators blocked major roads and held violent protests in Paris, with some seeking to distance themselves from the more radical and violent elements of the movement.
The French government had initially planned to increase the carbon tax, which was introduced in 2014 under the Francois Hollande government, from €39 in 2018 to €47.5 in 2019. This increase, along with the adjustment of the diesel tax with the petrol tax, caused diesel prices to go up. The diesel tax was particularly controversial because diesel fuel was historically taxed at a lower rate than regular fuel in France to support the French car-making industry, which had invested heavily in diesel technology. As a result, diesel cars became a popular choice for French motorists, and diesel fuel is still commonly used.
In response to the social movements and protests at the end of 2018, the French president decided to scrap the planned tax rise, marking the first significant U-turn by President Emmanuel Macron's administration. The French government has other plans in place to help people who heavily depend on their vehicles, such as financial incentives to exchange old polluting cars for newer eco-friendly models and a subsidy called the "ecological bonus" for those who rent or buy electric cars.
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The gilets jaunes movement
The gilets jaunes (yellow jackets/vests) movement in France was sparked by a planned increase in fuel taxes, which protesters argued would disproportionately affect those in rural areas who rely on vehicles for work and transportation. The movement, which began online, soon spread to include people angry about higher living costs and evolved into a wider anti-Macron rebellion. Demonstrators blocked roads across France and held violent protests in some of Paris' wealthiest neighbourhoods.
The French government had planned to phase out fossil fuels through small but regular tax increases, with the next tax increase due to start on 1st January 2019. However, in the face of the gilets jaunes protests, President Emmanuel Macron and Prime Minister Édouard Philippe scrapped the planned tax rise. Macron called for calm as the protests threatened to destabilise his presidency, but the gilets jaunes called for further protests.
Polls at the time reflected conflicting views, with one finding that 72% of people in France supported the movement but not the violence, and another finding that 70% thought the freeze in fuel tax rises should mean the end of the protests.
While fuel taxes in France are among the highest in the EU, European Commission data showed that taxes on all petrol products had actually fallen in the eurozone in the two years preceding the protests. Taxes made up 60-64% of the total price of fuel in France, with the rest subject to the price of the oil barrel. The increase in fuel prices in 2018 was due to a rise in crude oil prices, an increase in the carbon tax, and the adjustment of the diesel tax with the petrol tax.
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Frequently asked questions
The "gilets jaunes" or "yellow jackets" movement is a French protest movement against rising fuel prices and, more broadly, higher living costs.
The immediate cause of the "gilets jaunes" movement was a planned increase in fuel taxes, specifically a rise in crude oil prices in 2018 and an increase in the carbon tax.
In 2018, the French government planned to increase fuel taxes, with the diesel tax going up by 7.6 cents per litre and the tax on petrol going up by 3.9 cents per litre.
The "gilets jaunes" movement led to the French government scrapping the planned fuel tax rise in December 2018. The movement also evolved into a wider anti-Macron rebellion, with protesters blocking roads and holding violent demonstrations in Paris.
Critics of the fuel tax increase argued that it would disproportionately affect people in rural areas, lower-income families, and those who rely on vehicles for work and transportation.
