About the need to reduce public deficits in order to be able to invest in the ecological transition.

About the need to reduce public deficits in order to be able to invest in the ecological transition.

In France today there are about 39 million cars in circulation [1] and 11,000 gas stations [2]. By 2030 at least 30% of the vehicles will be electric, representing 12 million vehicles [3]. This transition to electric mobility will require colossal private investment. These investments will only be possible if the tax burden on households and businesses is significantly reduced. This means that France must strongly reduce its financial needs. It is necessary to recall that the weight of the public sector in France in 2018 represents 56% of GDP. That’s 10 points higher than the European average. The tax burden in France is 53.5% of GDP. Here again it is 6 points more than our European partners [4]. These figures are not favorable to the private investments that the ecological transition requires. It is not an exaggeration that an electric vehicle requires at least 3 charging stations: one at the start and one at the arrival of the main route most used by the vehicle, plus at least one shared public charging station at gas station. The cost of installing a residential charging station (slow recharge) is 870 euros, the installation of a charging station on a public parking costs between 2890 and 3890 euros. The price of a charging points at a gas station (fast charging) is 43 400 euros [5]. The additional cost of an electric car for purchase is an average of 10,000 euros. Household spending will mechanically increase by 110 billion by 2030 just for the purchase of electric vehicles to which will be added ten billion for the installation of charging station in residential area, 30 billion for the installation of charging station on car parks and 3 billion more for the installation charging points in gas stations (5 per station). It is therefore about 153 billion that must be found over a period of 11 years, or about 14 billion euros per year. In France the tax burden on households and businesses has increase by 64 billion per fiscal year on average over the period 2011-2017, taking as reference year 2011 [6]. This is 4 times what is necessary for the ecological transition to have an electric mobility!


source: tradingeconomics.com

[1] French car fleet

[2] France has only 11,000 service stations

[3] By 2030, at least 30% of vehicles will be electric

[4] Public deficit in the euro area

[5] Installation of an electric car charging station: administrative procedures

[6] Tax meter 2011-2017: +64.4 billion euros of levies on households and businesses

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