Economist Sabine Garabedian argues in a Le Monde op-ed that price reduction measures in overseas France won't address the cost of living without boosting living standards. The new bill, adopted on October 28, aims to enhance purchasing power but remains piecemeal. Price gaps obscure a deeper divide with mainland France.
The issue of high living costs in French overseas departments resurfaces often, with public policies failing to address its deep roots. The October 28 bill seeks to boost purchasing power through price cuts, but Sabine Garabedian highlights their limitations. Prices there average 13% higher than in mainland France, while living standards lag 40% behind, producing a 'scissors effect' of high spending and low incomes.
Prices will stay structurally elevated for both imported and local goods, due to steep supply costs, narrow domestic markets, and an economy of small businesses unable to achieve scale economies. Oligopolies exist in the Antilles and Réunion, where a few groups control over 40% of markets, but reports show no excessive margins. Multiple players—transporters, importers, distributors—add their markups along the supply chain.
The starkest disparities hit food, up to +41% in the Antilles. The 'quality-price shield' targets this area, which makes up 70% of the basket in Réunion and 43% in Guadeloupe, versus just 15% in a standard consumption basket. Garabedian stresses: 'As long as living standards do not improve, a temporary price cut will not suffice to reverse the trend.' Solutions like regional cooperation and food self-sufficiency are mentioned, but focus must shift to raising incomes for true equality.
