About 350 French Companies Going Through Rough Patch Over Energy Crisis

PARIS (Sputnik) - About 350 French companies are going through tough times due to the energy crisis, Industry Minister Delegate at the French Finance Ministry Roland Lescure said on Monday.

"About 350 companies are in fact facing significant difficulties due to the energy crisis," Lescure told French broadcaster Franceinfo.

The minister noted that the figure is only the "tip of the iceberg," since the sharp rise in electricity prices affected all companies in France, with the exception of the smallest ones, which are protected by the "tariff shield."

According to Lescure, the main task at the moment is for the government to provide support to companies on a case-by-case basis so that they can continue their work.

The start of hostilities in Ukraine in February exacerbated the energy crisis unfolding in Europe over the past year. Disruptions in logistical and financial operations due to the conflict and Western sanctions against Russia have undermined supply chains and led to a spike in energy prices worldwide, pushing many European governments to resort to contingency measures. French media reported that a surge in energy prices, as well as a shortage of milk, meat and vegetables threaten the activities of food production plants in France.

The French government has extended the tariff shield, introduced in 2021, until the end of 2023 and expanded it to cover small businesses, that have fewer than 10 employees and a turnover of less than 2 million euros ($1.96 million). The shield protects French households and small companies from successive increases in electricity and gas prices. The new extension of the tariff shield limits the price increase for gas to 15% in January 2023 and for electricity to 15% in February 2023.