The government plans to mobilize 40 billion euros to support sectors in difficulty because of the coronavirus crisis, as part of the third draft amending budget to be presented to the Council of Ministers next week, the ministry announced on Thursday. Economy and Finance. This new amending finance bill (PLFR) is made necessary by a worsening of the recession, with a fall in gross domestic product (GDP) of 11%, a deficit which will widen to 11.4% of GDP and a public debt that will swell to 120.9%, detailed the ministry during a telephone press point.
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Budgetary measures and measures to support corporate cash flow
After the emergency plan of more than 110 billion euros already released since the start of the crisis, these 40 billion euros are intended to support several sectors in difficulty such as the automobile, tourism or aeronautics. They combine both budgetary measures and measures to support corporate cash flow, for example via loan guarantees.
If he has already mobilized 18 billion for tourism and 8 billion for the automobile, the Minister of Economy must unveil on Friday a plan for the technology sector, before that for aeronautics next week as well as measures on small business.
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"The important thing for us is growth, the return of growth and not losing human capital or physical capital, through bankruptcies or layoffs", we defend in Bercy to justify these impressive figures on the crisis facing the French economy after eight weeks of confinement. In total, this draft budget will include 13 billion euros in budgetary appropriations and 12 billion euros in additional public guarantees.
10% decline in consumption and 19% in investment
Despite the recovery manifested since the deconfinement on May 11, the government anticipates in particular a 10% drop in consumption, 19% in investment and the creation by households of precautionary savings of around 100 billion. euros. The difficulties in the tourism sector alone will weigh "almost 1 point" on GDP this year, according to Bercy.
In terms of foreign trade, the government forecasts a 12% drop in global demand for France. Faced with this drop in activity, the revenue from compulsory levies (contributions, VAT, company tax, etc.) is further revised down by 27 billion euros compared to the previous rectified budget adopted in April.