The bill, originally introduced by the Bayrou administration and taken up by Sébastien Lecornu’s administration, will be considered on Tuesday on the floor of the National Assembly.
The bill to combat the high cost of living in the overseas territories has cleared its first parliamentary hurdle. Introduced under the government of François Bayrou and later taken up by that of Sébastien Lecornu, the bill was adopted by the Senate’s Economic Affairs Committee. It aims to boost purchasing power, enhance commercial transparency, and transform the overseas economies, against a backdrop of significant social tensions following the protests that took place in Martinique in the fall of 2024.
A Stronger Value-for-Money Advantage
Senators approved several landmark measures, including the strengthening of the Quality-Price Shield (BQP), a flagship program established in 2013 to keep the cost of essential goods in check. The legislation now provides not merely for price moderation, but for an actual reduction in the price gap with mainland France, in order to tangibly improve the cost of living for households in the overseas territories.
Opposition to Lowering the Threshold for Resale at a Loss
However, the committee rejected one of the bill’s most controversial provisions: the exclusion of transportation costs from the calculation of the threshold for selling at a loss. This measure, which would have allowed retailers to lower their shelf prices even further, was deemed risky for the local economic balance. According to rapporteurs Micheline Jacques (Les Républicains) and Frédéric Buval (Macronist group), it «would risk strengthening the dominant positions of large corporations, undermining local businesses, and penalizing local production.».
A text deemed still insufficient
Despite the bill’s unanimous approval in committee, several senators expressed reservations. «This bill represents real progress in terms of transparency, but concerns remain in the long term,» Frédéric Buval emphasized during the question period. Dominique Estrosi Sassone, the committee’s LR chair, for her part, regretted that the law «does not live up to the expectations of overseas residents,» while praising «the modest progress» made during the discussions.
Price differences remain staggering
According to the National Institute of Statistics and Economic Studies (INSEE), price differences for food products still reach up to 42 % between the overseas departments—particularly Guadeloupe and Martinique—and mainland France. Public debate on the bill will begin on Tuesday, with a vote expected by the end of October.
Understanding: What Is the Break-Even Point?
The no-loss resale threshold refers to the minimum price at which a retailer may resell a product. In France, the law prohibits a retailer from selling goods at a price lower than their actual purchase cost—that is, the purchase price plus transportation, storage, and procurement costs.
This rule is intended to protect small retailers and local producers from dumping practices by large retailers, which might temporarily sell at a loss to eliminate competition before raising prices.
The bill to combat the high cost of living proposed excluding transportation costs from the calculation of this threshold in order to allow retailers to lower shelf prices, particularly in overseas territories where freight costs account for as much as 20 to 30 % of the final price of products.
However, the Senate Economic Affairs Committee rejected this measure, arguing that it would primarily benefit large retail chains at the expense of neighborhood stores and local producers. According to its rapporteurs, Micheline Jacques (LR) and Frédéric Buval (Macronist group), such a reform would risk «strengthening dominant positions, undermining small players, and penalizing local supply chains.».
