New extension to rescue sectors in difficulty. The National Assembly adopted a third emergency budget on Thursday evening in response to the "unprecedented crisis" of the coronavirus, with a debate on the ecological compensation for public aid granted to companies.
This third amending finance bill provides for an additional 45 billion euros to help tourism, the automobile or aeronautics. Adopted at first reading with the votes of the majority and those of LR, it must now be examined by the Senate.
In total, the government has been claiming support from “460 billion euros” since the start of the crisis, including loans or simple state guarantees. It is a "vast safety net, representing more than 20% of our national wealth," argued budget rapporteur Laurent Saint-Martin (LREM).
An anticipated 11% recession
Considered since June 29 by MPs - with an interruption due to new government - this bill expects a historic recession of 11% of gross domestic product (GDP) in 2020, a deficit that is widening still further (11.5 % at the end of the debates) and a public debt which swells to 120.9% of GDP.
It provides 18 billion euros for tourism, 15 billion for aeronautics or displays 8 billion for the automotive plan. It also confirms aid of 4.5 billion euros to communities, when their revenue melts with the crisis. During the debates the Minister of Economy Bruno Le Maire notably mentioned a "cantonment" of the "Covid debt", a separate treatment which could allow to spread its amortization over time, "for example until 2042 "
He also said he expected "at least 800,000 job cuts" by the end of the year.
Several fiscal gestures were added during the discussions, intended for carers, soldiers or to support the press. However, a large number of requests were referred to the overall recovery plan expected at the start of the school year. The final day of discussions was marked by a debate on ecological compensation for public aid.
Greenwashing on the left
The Assembly voted for an LREM measure calling for “strong” ecological commitments from large companies, with the annual publication of a “report” on the reduction of their greenhouse gases and a fine of 375,000 euros in the event of failure to these publication obligations. "A lure" and simple "greenwashing", denounced the left and environmental NGOs.
The deputies also adapted the partial unemployment system and extended social ordinances for Guyana and Mayotte, where the state of health emergency is extended until the end of October, because of a "worrying" health situation. The Assembly also adopted a government amendment simplifying the mobilization of the supported employment scheme for people with disabilities.
- Coronavirus
- Economy