France's Macron meets bank chiefs on planned reforms

PARIS, Dec 11 (KUNA) -- French President Emmanuel Macron on Tuesday held high-level talks with France's bank chiefs to discuss ways to boost earning power for people as part of a broad plan to hike income and bring down living costs.
On Monday, Macron told the nation that he would take steps beginning in 2019 to increase minimal wage level by Euros 100 (USD 114) per month and alleviate tax burdens on retirees in the lowest income categories.
The French president, faced with an insurrectional situation with riots and pillaging in several cities, also conceded on a planned eco-tax on fuel and he also scrapped several other measures that would have hit the poor hardest.
For a month now, the so-called "Yellow Vest" demonstrators have clamoured for an easing of the tax burden and want measures to increase purchasing power. Macron's measures were met with disappointment and a call, by some, to continue the protests around the country.
Economy Minister Bruno Le Maire has evaluated the damage to the economy of the violent protests and 0.1 percent loss in GDP, while the Bank of France has said it would be double that figure.
The measures announced Monday by Macron are estimated to cost the government more than Euros 10 billion (USD 14 billion), according to information published Tuesday by the French Labour Minister.
France's deficit is certain to increase and it may not meet European Union targets in that area in 2019.
Macron also put pressure on the banking sector chiefs on Tuesday, urging them to reduce service charges and interest rates on punctual debt and he called for a freeze on bank charges for next year.
He also called on banks to be attentive and cater to the needs of the business community in cases where they were attacked and suffered property damage during the four weekends of demonstrations and blockages which crippled business activity in some areas.
The Elysee Palace, commenting the President's meeting with the bank chiefs, said that agreements reached Tuesday would mean an extra Euros 500-600 million (USD 700-840 million) in fresh purchasing power that will be redistributed to consumers. (end) jk.ibi