Evening Update Monday 26 September 2022

An unprescedented rise in the salaries of teachers has been announced by the French government as part of its budget for next year unveiled today. 935 million euros is being allocated for the rise with an additional 1.7 billion euros being provided for pay increases for all staff of the Education Ministry. The draft budget announced today also reveals plans for over 10,000 addition civil servants to be recruited. The government also announced plans to create 5,900 accomodation places for refugees and asylum seekers. Economy Minister Bruno Le Maire said that the "top priority" is to bring down inflation. He added that the government didn't want to raise taxes but wanted to protect households. The energy "tarrif shield" for households which had previously been announced was also confirmed in the budget. Bruno Le Maire added that the government will also help shield businesses from rising energy costs.

The government has also announced the draft social security budget for next year. The amount of financing dedicated to the pandemic will be limited to one billion euros next year for tests and vaccines. Amongst other measures, three thousand caregivers will be recruited for elderly care facilities and family support allowance for single parents will be increased by 50%. The budget also included a range of measures aimed at reducing costs.

Two motorways in southern France were closed this lunchtime as a result of serious traffic accidents. A truck caught fire around 1:00 p.m. today on the A9 motorway between the Remoulins and Nîmes. It led to a closure of  the A9 in both directions between Remoulins and Nîmes Est. An accident involving a heavy goods vehicle and a coach occurred around 12:45 p.m. on the A7 motorway between the Chanas interchanges and the Vienne Reventin barrier towards Lyon. The A7 motorway was closed and led to major disruptions in the direction of Lyon including a jam of 18km.

 

BUSINESS

This evening the Bank of England has said it will "not hesitate" to raise interest rates to curb inflation after the pound fell to a record low against the US dollar. The Bank decided not to hold an emergency meeting to set new rates but said it would change them "by as much as needed" when it meets in November. It follows the pound hitting a record low against the dollar earlier today as markets reacted to the UK's biggest tax cuts in 50 years announced by the UK chancellor last week. It later regained some ground.  

Meanwhile the Organization for Economic Cooperation and Develpoment has forecast that there will be zero growth for the UK economy next year. It also downgraded its growth forecast for this year from 3.6% to 3.4%.

Discount retailer Aldi has gained more than 1.5 mill