Economy France should experience in 2020 its strongest recession since...

France should experience in 2020 its strongest recession since 1945, according to Le Maire

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France will undoubtedly know in 2020 its worst year of economic recession since the end of the Second World War, estimated Monday the Minister of Economy Bruno Le Maire during a hearing by the Senate Economic Affairs Committee. “This crisis will be violent, global and lasting“Said the boss of Bercy, adding that he did not see”other comparison, in terms of economic shock“Than the 1929 crisis.

The worst growth figure that has been made by France since 1945 is in 2009, after the great financial crisis of 2008: -2.2%. We are likely to be well above -2.2%This year, warned the minister. A clarification which underlines “the extentOf the shock facing the French economy, he stressed.

Faced with this crisis, Bruno Le Maire defended the choices “totally innovativeFrom the government to support businesses and employees. He notably mentioned the rise of the partial unemployment scheme, which “already concerns 5 million employees and already costs 11 billion euros” The latter must “allow to restart as quickly as possible, avoiding mass layoffsDuring confinement. In parallel, “more than half a million companies“Appealed to the solidarity fund for a”budgetary commitment of 1.7 billion euros per month” Finally, 100,000 companies have used state guaranteed loans for a total of “20 billion euros

Returning to the defense of strategic French companies, the Minister clarified that the executive did not count “go back on [sa] conception of the state in the economyIn other words, any nationalizations would only be temporary, in order to protect the groups. “The state has no vocation to administer the economyAdded Bruno Le Maire.

Without a common European response, the EU will “explode”

At European level, the Minister warned against any response which would not be coordinated between the 27. “A common currency area will not be able to withstand widening economic gaps between its members“, He warned, calling for a coordinated response within the Union: the latter”will explode“If the Member States diverge too much in their economic response, says Bruno Le Maire.

Three tools can still be used to respond to the crisis. First, the activation of “european stability mechanismTo support states. Then the European Investment Bank can provide loans to companies. Finally, Brussels can support partial unemployment within the Union. But these elements do not “will not be enough” : a “investment fund or solidarity fund scheme“To finance”all post-crisis spending“, For example on public services, the hospital, which should be”rebuilt all over EuropeCould be put in place. Certain sectors, such as the automobile, air transport or tourism, will also have to be supported by this fund. The latter would also finance longer-term investments, to prevent Europe from falling behind emerging economies.

The fund would be financed by a loan “several hundred billion euros”, Produced by the European Commission by taking advantage of its favorable rating on the markets to benefit from a reduced interest rate. The pot would only finance investments, to “pool the investment expenditure of the Member States of the European Union” France will defend this system with its partners, so that it can be defined quickly. “This crisis demands immediate and future solidarity from the Union“Concluded the Minister.

See also – “The growth figure will be much lower than what has been estimated “According to Bruno Le Maire

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