News Digest: Is Ryanair Stopping Flights to France?

Last week’s farmer’s strikes continue this week, with protests staged outside the European Parliament in Strasbourg today, as well as smaller demonstrations set to take place around the country. The ongoing protests, which saw roads blockaded around the country last week, coincide with a debate and vote today of France’s Assemblée Nationale regarding the Mercosur free trade agreement. French farmers’ unions are vehemently opposed to the agreement, which would ease trade laws and taxes between South America and the EU – a further threat to France’s already struggling agricultural industries.

Today’s vote will not hold any sway over the trade deal itself; rather, it will serve to establish France’s position. French President Emmanuel Macron has already stated that France won’t sign the deal in its current form, so this will also be an opportunity to debate the crucial aspects of the deal that would need to be changed to ensure France’s participation.

The controversial “eco-tax” increase included in France’s 2025 budget has already been the subject of a pilot and airline worker strike, and now budget airline Ryanair has spoken up in protest, too. The eco-tax – officially the taxe sur la solidarité des billets d’avion (TSBA) – has been levied on each flight leaving France since 2006, but the recent proposal would see the amount triple. Air France recently shared an example showing that airline tickets currently include a €2.63 tax on each economy ticket; this would increase to €9.50 if the current proposals are approved for 2025.

Ryanair, who recently made headlines for pulling out of Bordeaux airport due to increased fees, issued a statement claiming that the airline would “reduce capacity to and from French regional airports by up to 50 per cent from January 2025 if the French government pursues its short-sighted plan”. The airline currently runs flights to and from 22 French airports, including Paris Beauvais.

As we move into December at the end of this week, France still hasn’t managed to approve its 2025 budget. Appointed by President Macron in the hopes that he would manage to bridge the widening divide between the country’s political parties – none of which managed to secure a majority in the spontaneous elections earlier this year –  Prime Minister Michel Barnier’s first task was never going to be an easy one.

After the original budget was rejected by the Assemblée Nationale, an amended bill was submitted to the Senate, this time including a host of new taxes added by the left. Many of the amendments, however, especially those that are incompatible with EU membership or the French constitution, are likely to be rejected by the Senate. As we await the further amended bill being presented to the Assemblée Nationale, Barnier’s recent comments that he would “probably” need to use Article 49.3 to push the budget through has stirred further unrest. In particular, Marine Le Pen – herself currently on trial for allegedly creating fake jobs at the EU parliament – vowed that the Rassemblement National (RN) would support a vote of no-confidence in Barnier. With Le Pen’s opposition, the Nouveau Front Populaire, also promising to support such a motion, Barnier is left in a tricky spot. The options – leaving a debt-ridden France moving into 2025 without a budget or the downfall of yet another French government could be equally disasterous.

Happy holidays to all our US and Canadian readers, and anyone else who celebrates Thanksgiving!