News Digest: New Government, Port Blockades & Financial Aid to Destroy Vineyards

President Emmanuel Macron has announced a new government led by Prime Minister Michel Barnier, reflecting a rightward shift amid ongoing economic challenges. Meanwhile, rising rental prices in Paris raise concerns ahead of the Olympics, the French government seeks financial aid to address declining vineyards, and environmental protests disrupt operations at Marseille’s cruise ship port. Here are the news stories you need to know about this week in France…

Macron announces new government

Emmanuel Macron has unveiled a new government led by Prime Minister Michel Barnier, marking a shift to the right following a hung parliament from the recent snap election. Despite the left-wing alliance winning the most seats, the cabinet features significant representation from the conservative Republicans, including Bruno Retailleau as interior minister. The government faces economic challenges, with a rising deficit that has drawn EU scrutiny. Macron’s supporters successfully retained control of vital ministries, including those overseeing the economy and energy, indicating that France’s stance on significant economic issues is unlikely to change dramatically. It will need to rely on support from other parties to pass legislation, as a no-confidence motion looms and protests against the new administration have erupted in Paris.

Have the Olympics emboldened landlords to raise rents in Paris?

It has been reported that 30% of the Parisian rental listings analysed by The Abbé Pierre Foundation this year exceed the legal rent ceiling, showing a 5-point improvement compared to 2021, but regressing by 2 points compared to 2023.

The rent control measures were implemented as part of the Elan law, which allows cities in tight housing markets (“zones tendues“) to apply rent control on an experimental basis for a period of 5 years. The system aims to moderate rent increases and make housing more affordable in the city.

To establish the rent cap, a reference rent per square meter is established for each type of property which is then multiplied by the number of square meters of living space in the property. The result determines the maximum allowable rent for the property.

In Paris, the system is set to be reviewed in November 2026 which is mentioned as the “legal expiry date” for the current system. The Abbé Pierre Foundation is calling on parliamentarians to make rent control permanent beyond this 2026 expiry date.

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French Government appeals for financial aid to destroy vineyards

The French government has appealed to the European Commission for £103 million in financial aid to destroy 74,000 acres of vineyards, primarily in the Bordeaux region, due to a significant decline in wine sales both domestically and abroad. This drastic measure comes as a response to changing drinking habits, with French wine consumption plummeting by 70% over the past six decades. The plan aims to compensate volunteer winegrowers with £3,440 per hectare of permanently removed vines, provided they pledge not to replant. The crisis has particularly affected Bordeaux wines, with younger consumers apparently increasingly favouring cocktails and beer over traditional wine consumption.

Protestors blockade Marseille Port

Environmental campaigners from Extinction Rebellion and Stop Croisieres staged a protest at Marseille’s cruise ship port on Saturday, disrupting vessel traffic for several hours. The activists, concerned about the pollution caused by large cruise ships, formed a blockade using canoes across the port entrance, forcing one ship to dock elsewhere and delaying others until the port reopened later that morning. The demonstrators highlighted issues such as air and sea pollution, climate impact, and poor working conditions on these vessels, calling for an end to what they termed “absurd, energy-intensive and toxic floating cities”.

🔴 BLOCAGE EN COURS 🔴
✊ Nous dénonçons le saccage de notre patrimoine maritime précieux qu’il faut protéger de l’industrie de la croisière. À Marseille, c’est 1 million de croisiéristes de plus que l’année précédente en 2023, et le chiffre ne fait que croître 📈

🧵1/3 pic.twitter.com/hQHEyehAID

— Stop Croisières (@SCroisieres) September 21, 2024