The coronavirus pandemic is hitting the French economy hard, and is expected to drop GDP by 8% this year. A situation "very worrying" for Geoffroy Roux de Bézieux, the boss of Medef, who fears a drastic increase in business bankruptcies.

The French economy falters. The coronavirus health crisis should cause an 8% drop in GDP this year, unheard of in France. And since the country is going into debt to finance crisis measures, the deficit should also soar around 9%. "The situation is very worrying," laments Geoffroy Roux de Bézieux, the boss of Medef, at the microphone of Europe 1.

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"Many companies currently have little or no turnover," he said. To relieve these companies in financial distress, the government is currently working on several assistance plans. The solidarity fund for small businesses will notably be boosted. Beyond the premiums for companies recording a fall of more than 50% of their turnover, the aid will be doubled for those directly threatened with bankruptcy.

The calculation of the aid paid will not be done on the turnover of the year before, as is usually the case, but on an average of the year, which will allow more companies to benefit from it.

"All the aid in the world will not prevent bankruptcy"

Monday evening, Emmanuel Macron said he envisaged a gradual deconfinement from May 11, if the health situation allows. Cafes, restaurants and hotels will remain closed until an indefinite date. Already affected by eight weeks of closure, they will undoubtedly suffer from this additional delay. To help them, the government is working on a specific aid plan. "This is what we were waiting for," said Jean-Pierre Mas, president of Entreprises du Voyage. The executive would head for the cancellation of certain tax and social charges.

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Despite these multiple aid plans, Geoffroy Roux de Bézieux fears a drastic increase in bankruptcies in the coming months. "In 2009, we went from 50,000 to 70,000 business bankruptcies. I'm afraid we will go even further." And adds: "All the aid in the world will not prevent bankruptcy."