a new 100 billion euro plan for the French economy

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Published on : 04/10/2020 – 07:15Modified : 04/10/2020 – 09:28

While France anticipates a vertiginous fall in its GDP and an explosion in its public deficit in 2020, Bruno Le Maire, Minister of Economy and Finance, and Gérald Darmanin, Minister of Action and Public Accounts in charge of Budget, presented the main lines of their new support plan… which could still evolve in the future, depending on the evolution of the health crisis caused by the Covid-19.

The figures are disproportionate and the references worrying: fall in French gross domestic product (GDP) estimated at 6% in 2020, public deficit which could be increased to 7.6% and debt to 112% this year, entering recession in the first quarter… Bruno Le Maire, Minister of Economy and Finance, even feared, at the start of the week, a recession like the country has never known before “ since 1945 ” The consequences of coronavirus pandemic and the containment introduced in France since March 17 are disastrous for the economy.

The envelope has more than doubled

Bruno Le Maire and the Minister of Action and Public Accounts in charge of the Budget, Gérald Darmanin, therefore presented, Thursday, April 9, a new emergency plan to support businesses. Initially set at 45 billion euros, the envelope has more than doubled, reaching 100 billion euros in this new version of the amending budget, which will be examined in the Council of Ministers on Wednesday 15 April.

Unknowns remain and this forecast may still evolve, particularly with regard to the duration of confinement and the terms of exit “Said Bruno Le Maire in an interview with the daily The echoes. Even more significant resources will therefore be allocated to the systems already provided for, such as deferral of charges, partial unemployment and the solidarity fund for very small businesses.

Tax cuts are maintained … for now

Expenses ” exceptional Dedicated to health will also increase significantly, from 2 to 7 billion euros. Regarding the post-health crisis, Bruno Le Maire believes that it is too early to detail a recovery plan, especially since deconfinement is not yet on the agenda. But this plan will have to respond to three priorities: encourage investment, specifically support the most affected sectors such as aviation or hotels and restaurants, and coordinate measures at European level. In this regard, the agreement finally reached by the finance ministers of the EU countries on a common economic response is an encouraging signal.

Finally, on tax policy, there is no question at this time of reviewing the copy. The tax cuts planned for next year before the start of the health and economic crisis are being maintained … for now. Questioned by Europe 1 Friday April 10, Bruno Le Maire assumed the choices made: “ Between thousands of bankruptcies and debt, we have chosen debt. “A debt that the minister wants” provisional “And that France will” reduce ” as quickly as possible. ” It will take effort “, He said.

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