From 1 July 2009 the VAT rate on restaurant meals was reduced in France from 19.6% to 5.5%, in an effort to encourage us to all eat out more and bring prosperity to the catering industry.

Many restaurants haven’t actually passed on the reduction to their customers, and it is very doubtful whether we will all rush out to restaurants more often anyway – how many people really think ‘Ah, good, the fixed price menu is now 22 euros instead of 25, let’s start going out more often…? ‘

But anyway, that’s the big idea – and apparently it will cost the French government two billion euros a year. Oops, little slip there, it should read ‘will cost the French taxpayer two billion euros a year’. A subtle difference, but I think you will agree it’s an important one.

Still, if you eat out enough (and don’t drink, because that isn’t included in the reduction) it would perhaps be possible to gain more than you lose.

Meanwhile here in Lot-et Garonne there was a lot of grumbling that none of the big building projects – new roads etc – that were supposed to re-launch the national French economy were actually in our department. ‘Let’s have our own program of big spending’ they said with one voice, ‘we want to be re-launched as much as the next department’.

Part of this extravaganza seems to be a plan to pour enormous amounts of grit on every road in the department. Cars are skidding off the road on every corner, and to go cycling I need to head off to nearby Dordogne department, which hasn’t resurfaced any of its roads in living memory and shows no intention of starting soon. They have potholes by the hundred, but no sign of thick grit.

Sidenote 1:  I can see the importance of a good infrastructure, good roads into the department etc, but have grave doubts whether emptying lorry loads of grit on a tiny lane between two lost villages will really make a difference.

Sidenote 2: There is a village near us that has installed an antenna so the village can have ADSL internet access (a good thing), but it needs electricity to function – electricity is available 10 metres away, but isn’t connected because EDF say it’s not their job unless someone is going to pay, and the local commune say they aren’t going to pay. Meanwhile our friends who are struggling to operate an internet driven business have to cope without it. Should this not be a greater priority in any ‘relaunch’ programme since it (a) costs almost nothing, and (b) attracts real business into the area?

What’s the connection between these two little stories?

Someone told me that the local taxes (mostly property taxes and business taxes) are to be increased by 14% in Lot-et-Garonne this year, presumably in part to pay for this gritting bonanza.

The extra charges on households as a result of this increase will, surprise surprise, outweigh the benefits from reducing VAT on restaurant bills.

So guess what, we can eat out less often not more often, and both our local taxes and other taxes are going to increase.

Now if I was having a major re-launch program I doubt if that would really be what I was aiming for…