Will the VAT tax drop in France banish the €6 Perrier?

There's been a lot of debate this week in Paris about whether the recent lowering of VAT (value-added tax) at restaurants from 19.6% to 5.5% will have any significant effect on the price of an espresso, plat du jour or bottle of wine.

A lot of Paris restaurant and café owners, frustrated by the slowdown since the smoking ban took effect in the city of light and the economic crisis hit, are saying they can't afford to lower any prices. But for anyone who's slugged down an espresso in less than a minute from a Paris café, only to find that the single (albeit hopefully delicious) slurp cost you over €3, or wondered why a Perrier costs more in some bars than an entree, the idea of a little moderation on the menu is a welcome one. For my part, I have noticed a few cafes near the center prominently advertising what looked to be a 10% price drop on some items (mostly coffee). We'll see whether the competition effect pushes others to jump on the bandwagon. With the steady mushrooming of Starbucks outlets around the city and traditional cafes and brasseries closing in waves, one has to wonder at times whether the owners of these essential Parisian establishments can afford not to move with the times.