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LIVING IN FRANCE

From tax cuts to plastics ban: French PM reveals list of reforms for ‘Act II’ of Macron’s presidency

French Prime Minister Edouard Philippe laid out on Wednesday the government's agenda for Act II of the current presidential term, highlighting the importance of the green agenda and tax cuts. Here's a look at the main reforms he laid out.

From tax cuts to plastics ban: French PM reveals list of reforms for 'Act II' of Macron's presidency
Photo: AFP
In a speech on Wednesday, Philippe set out the agenda for the government's planned reforms for the next 12 months in what is already set to be a packed parliamentary calendar. 
 
“Our road map is clear for the coming year, it is dense, we want to reconcile France with itself, our country needs unity and respect,” he said.
 
Here's a look at what's on the horizon. 
 
Environment 
 
The prime minister made it clear that the environment will be high on the list of priorities for the government over the coming months. 
 
“The next 12 months will be dedicated to accelerating the environmental agenda,” he said, adding that this would be achieved by “making our economy cleaner”, “cutting out waste” and “producing and eating better food”.
 
Among the plans to make the “economy cleaner” were closing France's oldest nuclear plant Fessenheim and passing a bill on energy and climate. 
 
France to close oldest nuclear plant (much to relief of the Swiss and the Germans)Photo: AFP
 
The prime minister also said the government would take steps to ban plastic packaging that cannot be recycled to cut down on waste and that there would be a national goal to promote health and sports, and fight obesity.
 
Philippe also announced his intention to reform the CITE tax credit (crédit d'impôt pour la transition énergétique). 
 
At the moment, if you have carried out energy-saving building work such as roof insulation or installing a heat pump in your family home, you can claim a tax credit of up to 30 percent as long as the work has been carried out by a professional tradesman. 
 
Employment
 
The prime minister stressed that on top of positive environmental policies 'Act 2' would be all about improving life for the French. 
 
“We need to reform unemployment insurance,” said Philippe, adding that the plan for doing so will be presented on June 18th.
 
“We will put an end to abuse of short-term contracts,” he said. 
 
This is not the first time the government has announced its intention to fight short contracts but French employers aren't happy about it. For example, restaurants and hotels have said they need to have these short contracts because their business fluctuates.
 
All you need to know about the unemployment benefits you can claim in France Photo: AFP
 
Gay rights
 
The bio-ethics bill, which includes the right to “medically assisted procreation” (known as “PMA” in France) to all women, including lesbians is set to be adopted by the government in late July and could be debated in Parliament by the end of September.
 
Taxes 
 
Philippe said that the government had received the message that the French are suffering from tax fatigue – one of the messages of the anti-government Gilets Jaunes movement – “loud and clear”. 
 
He confirmed that council tax (taxe d'habitation) will be completely abolished on primary residences for all French people.
 
“In total, household taxes will fall by 27 billion euros during this five-year period,” he said, adding that the drop in income tax announced by President Emmanuel Macron in April, will focus on “the working middle class.”
 
“The first drop in income tax will see an average household gain of €350,” he said. “The five million households included in the second drop will benefit from an average gain of €180.” 
 
These tax cuts are set to be voted through as part of the 2020 finance bill.
 
No fuel taxes or Macron's head: What do the 'yellow vests' actually want? Photo: AFP
 
Retirement 
 
One part of the prime minister's speech that will surely be less popular among the French was the discussion of increasing the retirement age.
 
“We must work longer: we will maintain the possibility of leaving work at 62,” he said, adding that nevertheless the government would introduce incentives to encourage people to work longer. 
 
“Already, the average age of retirement is above the legal age of retirement,” he said.
 
According to statistics published by an insurance fund for older people, the average age of retirement was 62 years, 8 months and two weeks in 2018.
 
Single parent families
 
The prime minister also said the government would look to improve the lives of single parent families after the issue was frequently raised during the course of the “Grand Debat” – Macron's answer to the 'yellow vest' protests. 
 
Philippe announced the creation of a “single family information service” in 2020, which will enable parents to “know in real time the availability of crèches and childminders available”.
 
He also said that from June 2020, there would be a “new system to protect single people against the risk of unpaid child support payments.” 
 
Paris parents warned over possible health risks at 30 creches built on polluted groundPhoto: AFP
 
Immigration
 
In his speech, Philippe confirmed his desire to “control” immigration, which he said is up by 22 percent, adding that there was a need to “take a firm stand against the abuse of the system” for asylum seekers. 
 
Muslim worship
 
The prime minister raised in his speech the possibility of reforming the way the Muslim faith is organised in France, something which has previously been raised by Macron. 
 
Philippe on Wednesday confirmed his desire to “recruit and train imams in France, who speak French “.

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PROPERTY

How to ensure your French property is insured for storm damage

Storm Ciaran’s property-wrecking passage through France - with another storm forecast for the weekend - may have many people wondering how comprehensive their insurance cover is. 

How to ensure your French property is insured for storm damage

In the wake of Storm Ciaran, thousands of property owners in France are preparing insurance claims – with initial estimates of the bill for damage between €370 million and €480 million.

Home insurance is compulsory in France, whether you own the property you live in or you rent – and it must include some level of storm damage cover. 

Check also to see if your insurance provides cover in case of a declaration of a catastrophe naturelle.

The garantie tempête (storm guarantee) covers damage caused by violent winds. What constitutes a ‘violent wind’ varies from contract to contract, but there appears to be a widespread consensus of agreement on wind speeds over 100km/h.

In most insurance contracts, this covers damage caused by the storm and within the following 48 hours – so you’re covered if, for example, a tree weakened by the storm comes down within that period and damages your property.

Be aware that, while the storm guarantee automatically covers the main property, it generally only covers any secondary buildings and light constructions – such as a veranda, shed, solar panels, swimming pool or fence – if they are specifically mentioned in the contract. 

The same is true of any cars damaged by debris. A basic insurance contract might not include storm damage, so it is always worth checking.

Damage must be reported to your insurer as quickly as possible. The deadline for making declarations is usually five days after any damage is noticed. This is especially important for second home owners, who may not be at the property when the damage occurs. 

In some cases – such as in the aftermath of Storm Ciaran – insurers may extend the reporting period. But under normal circumstances, it’s five days after the damage has been discovered.

What happens next

To make a claim, the first thing to do is contact your insurer by phone or email. Your insurer will take you through the next steps, but usually you have to send in a declaration – which should include an estimate of any losses and for any repairs, with evidence where possible, such as photographs and any receipts for purchases. 

Your insurer may also request proof of wind intensity, which can be provided for example by a nearby weather station.

The insurance company may appoint an expert to come and assess the damage, so make sure to keep damaged property safe until they arrive, as well as all invoices for any urgent repair work. 

What if you’re a tenant?

If you rent your property, you must report any damage inside the accommodation to your insurer and also notify your landlord so that they can file their own claim. 

In the case of a co-propriete, you must declare damage inside the accommodation to your insurer, while the trustee sends his own declaration to the collective insurance (which sometimes covers the private areas) .

How long does it take for claims to be settled?

Payment of the compensation provided for by the “storm guarantee” depends your home insurance contract. After the insurer has estimated the amount of damage, compensation is generally paid between 10 and 30 days following receipt of the insured’s agreement.

What if we got flooded?

In the case of flooding, you may have to wait for a natural disaster order to be issued. 

Catastrophe naturelle

The ‘state of natural disaster’ is a special procedure that was set up in 1982 so victims of exceptional natural events, such as storms, heavy rain, mudslides and flooding, as well as drought, can be adequately compensated for damage to property.

The government evaluates each area and deems whether it qualifies for the status of catastrophe naturelle (natural disaster). 

Essentially once a zone is declared a natural disaster, victims can claim from a pot of funds created by all insurers. If the zone is not declared a disaster, insurance companies are under no obligation to pay out. 

Under a “state of natural disaster” residents are covered for all those goods and property that are directly damaged by the phenomenon, in this case storms.

It applies to residential or commercial buildings, furniture, vehicles and work equipment that are already covered by insurance policies.

Homes must be already covered by a multi-risk insurance policy for the status of natural disaster to count.

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