Bruno Le Maire, Minister of the Economy, July 9, 2020. -

ISA HARSIN / SIPA

  • The draft budget for 2021 is unveiled this Monday in a context of uncertainty and unprecedented health crisis.

  • The government expects gross domestic product (GDP) to rebound by 8% next year, after a historic contraction expected to 10% this year.

  • Thanks to several measures, the government hopes to boost household consumption, which is crucial to getting out of the economic crisis.

Forgotten the European budgetary austerity rules, which forced states to keep their deficits below 3%.

The priority, in France as elsewhere, is recovery.

To boost the confidence of households, who have set aside around 100 billion euros since March, several initiatives have been renewed.

For individuals wishing to improve the thermal performance of their home, the new version of Ma Prime Rénov will come into force on January 1: it will be able to finance up to 90% of the estimate and will be paid “from the work phase”.

"For the most modest households, the aid can go up to 90% of the estimate, then it goes down to 75%, 60% and to 40% for the most well-off households", specified the Minister of Housing Emmanuelle Wargon in the

JDD

.

No tax increases

In real estate, the Pinel device, which allows you to have the right to a tax reduction when buying, is extended until 2022. The zero rate loan (PTZ), intended to finance part of its real estate purchase, is maintained next year, until December 31, 2021.

The government has assured that there will be no tax increases, but to generate some additional revenue, it has planned to pay off the social housing financing body Action Housing to the tune of 1.3 billion. euros, and complementary health insurance will pay a Covid surcharge of one billion euros next year (then 500 million in 2022).

Justice

Public expenditure: Justice will have an “exceptional” 2021 budget, according to Dupond-Moretti

Politics

Justice, health and police will have more resources in 2021, promises Bruno Le Maire

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