Despite the aid, French companies are struggling

According to the OFCE, never since the post-war period has the economy’s investment rate been so low.

In what state will companies come out of this terrible year 2020? Public aid measures (partial unemployment, solidarity funds, loans guaranteed by the State, etc.) are currently playing their role of shock absorbers. Bankruptcies are at their lowest, before certainly rebounding strongly in 2021. But beyond the issue of closures, economists are worried about the ability of companies that will withstand the shock to continue to invest to prepare for their future.

The 2020 recession will cost the country around 200 billion euros. Most of this cost is absorbed by the state; in other words, all taxpayers. Companies also pay a large ecot, between 60 and 70 billion euros according to estimates. These losses can be explained, according to economist Mathieu Plane of the OFCE, by the fact that the State, at least during the first confinement, “did not cover the fixed costs of companies (buildings, machinery and equipment, transport equipment, etc.)».


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