Macron scraps French fuel tax hike amid violent protests

Riot police clash with demonstrators during a protest of Yellow vests (Gilets jaunes) against rising oil prices and living costs on the Champs Elysees in Paris, on December 1, 2018. (AFP / Alain Jocard)
Updated 06 December 2018
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Macron scraps French fuel tax hike amid violent protests

  • Many workers in France are angry over the combination of low wages, high taxes and high unemployment that have left many people struggling financially
  • Instead of appeasing the protesters, Macron's decision has spurred other groups to join in, hoping for concessions of their own

PARIS: French President Emmanuel Macron scrapped a fuel tax rise Wednesday amid fears of new violence, after weeks of nationwide protests and the worst rioting in Paris in decades.
Protesters celebrated the victory, but some said Macron’s surrender came too late and is no longer enough to quell the mounting anger at the president, whom they consider out of touch with the problems of ordinary people.
Macron decided Wednesday to “get rid” of the tax planned for next year, an official in the president’s office told The Associated Press. Prime Minister Edouard Philippe told lawmakers the tax is no longer included in the 2019 budget.
The decision has ramifications beyond France, since the fuel tax rise was part of Macron’s efforts to wean France off fossil fuels in order to reduce greenhouse gases and help slow climate change. Its withdrawal is both a blow to broader efforts to fight climate change and a warning to other world leaders trying to do the same thing.
The “yellow vest” protests began Nov. 17 over the government plan to raise taxes on diesel and gasoline, but by the time Macron bowed to three weeks of violence and abandoned the new fuel tax, protesters were demanding much more. Many workers in France are angry over the combination of low wages, high taxes and high unemployment that have left many people struggling financially.
On Tuesday, the government agreed to suspend the fuel tax rise for six months. But instead of appeasing the protesters, it spurred other groups to join in, hoping for concessions of their own. The protests took on an even bigger dimension Wednesday with trade unions and farmers vowing to join the fray.
Police warned of potential violence during demonstrations in Paris on Saturday, with one small security forces union threatening a strike.
So after nightfall Wednesday, as parliament debated the 2019 budget, Macron’s government suddenly gave in.
“I have no problem with admitting that on such or such question we could have done differently, that if there is such a level of anger ... it’s because we still have a lot of things to improve,” the prime minister told legislators.
Philippe said “the tax is now abandoned” in the 2019 budget, and the government is “ready for dialogue.” The budget can be renegotiated through the year, but given the scale of the recent protests, Macron is unlikely to revive the added fuel tax idea anytime soon.
Jacline Mouraud, one of the self-proclaimed spokespeople for the disparate yellow vest movement, told the AP that Macron’s concession “comes much too late, unfortunately.”
“It’s on the right path, but in my opinion it will not fundamentally change the movement,” she said.
Three weeks of protests have caused four deaths, injured hundreds and littered central Paris with burned cars and shattered windows.
The sweep of the protests and their wide support by citizens of all political stripes has shocked Macron’s government. In the last few days, Paris saw the worst anti-government riot since 1968, French students set fires outside high schools to protest a new university application system, small business owners blocked roads to protest high taxes, and retirees marched to protest the president’s perceived elitism.
Macron’s popularity has slumped to a new low since the demonstrations began. The former investment banker, who has pushed pro-business economic reforms to make France more competitive globally, is accused of being the “president of the rich” and of being estranged from the working classes.
On Wednesday, France’s largest farmers union said it will launch anti-government protests next week, after trucking unions called for a rolling strike.
Trade unions so far have not played a role in the yellow vest protest movement but are now trying to capitalize on growing public anger. A joint statement from the CGT and the FO trucking unions called for action Sunday night to protest a cut in overtime rates.
The FNSEA farmers union said it would fight to help French farmers earn a better income but would not officially be joining forces with the “yellow vests” — protesters wearing the high-visibility vests that motorists are required to keep in their cars.
French police have cleared most of the fuel depots that protesters blocked earlier in the week, but fuel shortages still hit parts of France on Wednesday, affecting hundreds of gas stations.
Demonstrators also blocked toll booths, letting drivers pass without paying, to press demands that ranged from higher incomes and pensions to the dissolution of the National Assembly, France’s parliament.
At Tolbiac University in downtown Paris, students took over a school building and classes were canceled.
“We need taxes, but they are not properly redistributed,” protester Thomas Tricottet told BFM television.
The high school students’ FIDL union called for “massive” protests Thursday and urged France’s education minister to step down.
One student was injured during protests at a high school in Saint-Jean-de-Braye in north-central France. BFM said he was shot in the head with a rubber bullet. Julien Guiller, a spokesman for the regional school administration, told the AP that the student was expected to survive.
Until he scrapped the fuel tax rise, Macron’s actions after returning from the G-20 summit in Argentina had done little to persuade protesters that he was listening to their concerns.
He has refrained from speaking publicly about the protests and has largely remained in his palace. On Tuesday night, he was jeered as he traveled to a regional government headquarters that was torched by protesters over the weekend.
One activist said Wednesday that he fears more deaths if Saturday’s yellow vest demonstration in Paris goes ahead and urged Macron to speak out and calm the nation.
“If not there will be chaos,” said Christophe Chalencon.
Chalencon, a 52-year-old blacksmith from southern France, told the AP the French public needs Macron to “admit he made a mistake, with simple words ... that touch the guts and heart of the French.”
In a disparaging tweet, US President Donald Trump claimed that Macron’s decision Tuesday to delay the gas tax hike showed that the French leader doesn’t believe in the 2015 Paris global climate accord.
The Trump tweet came as thousands of climate experts were meeting in Poland to work out national responsibilities in the fight to reduce emissions and slow global warming.


Lufthansa adds more flights to Asia, Africa as Middle East war reshapes air travel

Updated 06 March 2026
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Lufthansa adds more flights to Asia, Africa as Middle East war reshapes air travel

  • Airlines across Europe have been redirecting capacity after suspending services in the Middle East
  • Lufthansa said the move also helps meet demand on long-haul routes that Middle Eastern carriers cannot currently serve

LONDON: Lufthansa said on Friday it was shifting capacity from 10 canceled Middle Eastern destinations to routes such as Singapore and Bangkok as it contends with disruption from the US-Israeli war on Iran.
Airlines across Europe, including budget carrier Wizz Air , have been redirecting capacity after suspending services in the Middle East.
Lufthansa said the move also helps meet demand on long-haul routes that Middle Eastern carriers cannot currently serve.
Airline stocks have slumped this week as US and Israeli airstrikes on Iran — and retaliatory strikes by Iran across the Middle East — have disrupted long-haul flights and sent oil prices soaring.
“The war in the Middle East proves once again how exposed air traffic is and ⁠how vulnerable it ⁠remains,” Lufthansa CEO Carsten Spohr said in a statement. He added the outlook was uncertain, particularly for jet fuel costs.
The schedule changes came as the German group reported better-than-expected 2025 results, saying stricter financial management and fleet renewal had helped contain costs and lift profits. Its shares rose as much as 4 percent, before reversing to trade down 1.2 percent at 1246 GMT.
The company said demand on routes to and from Asia and Africa had risen strongly since the conflict began ⁠on Saturday, and it would stick with its focus on expanding long-haul services. Spohr said new flights to Asia would launch in days.
Lufthansa did say how many services it had canceled because of the conflict.
While carriers face costs for rescheduling and rerouting, the biggest impact for those outside the Middle East is expected from surging fuel prices. Brent crude futures have jumped more than 20 percent this week.
Spohr said Lufthansa was well hedged in the short term. The group hedges fuel up to 24 months ahead and was 85 percent hedged as of December 31, according to its annual report.
RESILIENCE
European carriers, including Lufthansa, benefited from slightly lower fuel bills in 2025. Lufthansa’s fuel bill fell 7 percent, helping support earnings as passenger demand stayed firm.
“Last ⁠year we were able ⁠to significantly increase the Group’s operating profit and achieved the highest revenue in our history. Our results demonstrate the resilience and stability of the Group,” Spohr said.
Lufthansa reported an adjusted operating profit of 2 billion euros ($2.3 billion), compared with 1.9 billion euros forecast in a company-compiled analyst poll and up from 1.6 billion euros in 2024. The group also posted an operating margin of 4.9 percent, up from 4.4 percent a year earlier.
Lufthansa aims to lift operating margins to 8 percent-10 percent between 2028 and 2030 from 4.4 percent in 2024, but strikes by workers, including the most recent on February 12, have made it harder to boost profitability.
Bernstein analyst Alex Irving said ongoing weakness in the passenger airline segment persisted, but that strong performances in Cargo and Lufthansa Technik helped lift profits.
The carrier said the outlook for 2026 was unclear due to geopolitical uncertainty. It projected capacity growth of 4 percent, alongside increased revenue and profit margin.