PARIS (dpa-AFX) - France has to save money and is reducing the purchase premium for e-cars from 5000 to 4000 euros. The reduction, which was already envisaged at the end of last year, was published in the official gazette on Tuesday and will take effect from Wednesday. For people with a taxable annual income of less than around 25,000 euros, an e-car premium of 7,000 euros will be retained. The premium for the purchase of environmentally friendly delivery vans will also be reduced by 1000 euros.

The reason for the cuts is the government's cost-cutting efforts in Paris to keep the budget in balance. The annual subsidies of 1.5 billion euros earmarked for the switch to more environmentally friendly cars are not to be exceeded this year. Last year, 300 million euros more in subsidies were paid out than had been budgeted for.

After a huge rush, the state leasing of e-car models from 100 euros per month will be discontinued for the current year for the time being. The offer was aimed at people on low incomes who are dependent on a car for work and live at least 15 kilometers from their place of work. When the offer was launched around a month and a half ago, the government had initially expected 20,000 to 25,000 leasing contracts for 2024. In fact, there were 50,000 interested parties within a few weeks, not all of whom will initially be able to take advantage of the offer./evs/DP/mis