Coronavirus: France will create a solidarity fund for businesses

Text by: RFI Follow

To help the companies most affected in France by the coronavirus crisis, the government announces the creation of a solidarity fund and the uncapping of the partial unemployment scheme. Until a recovery plan comparable to Italy and Germany.

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Because of the coronavirus, the French economy is moving towards a serious slowdown in activity. How to help companies and avoid layoffs? A " solidarity fund " will be created for this purpose, Bruno Le Maire announced on Thursday. " I just want to make sure that [the money] goes to those who really need it, " warned the Minister of Economy and Finance.

Who could access this potential fund, the amount of which has not been specified? Access will be decided on the basis of turnover criteria. The idea of ​​the boss of Bercy is to " reserve it for the smallest companies " to cover their losses of turnover or exploitation. " I do not want the fund to allow some to shirk their responsibility, " insisted the minister, citing banks, insurers and major clients.

The @gouvernementFR reacted quickly and strongly by implementing a series of aid measures, such as short-time working, the spreading of social and fiscal charges, and direct tax reliefs.

📄 Measures and contacts to be accompanied accompagné https://t.co/T4tb9cOe4Z pic.twitter.com/bAt0WxQ8y0

Carrying over of social and fiscal charges

In addition, Bruno le Maire confirmed that the companies most affected by the health crisis could request a postponement of social and tax charges. " We will offer them this postponement, " promised the minister. It is not for her to ask for it, it is the social and tax administration which will propose to companies the postponement of their social charges and their tax charges. If, at the end of the day, companies cannot pay, we will cut taxes. "

The credit guarantee plan by Bpifrance will be strengthened to be extended to mid-size companies. This guarantee will be increased from 70% to 90%.

"Money well spent"

In addition, avoiding layoffs is, in the eyes of the Minister, “ resorting more to partial activity ”. When employees are placed in this position, the employment contract is suspended but not broken. " I think we should cap " the device, said Bruno Le Maire. It will be in the hundreds of millions of euros, but I think it is money well spent . "

The compensatory hourly compensation paid by the State to employers using the partial activity system has so far reached the level of the minimum wage, ie 8.03 euros net per hour. " We must take advantage of this crisis and the current economic difficulties to bring about a radical improvement in the system of partial unemployment in France, " continued Bruno Le Maire, denouncing a " incomplete " and " too slow " system.

3,600 companies penalized

The Minister of Labor, Muriel Pénicaud, agreed with Bruno Le Maire. Some 3,600 companies penalized by the spread of the new coronavirus have asked to benefit from partial unemployment measures for around 60,000 workers, she said on Thursday, four times more than at the end of last week.

This partial activity system, which aims to maintain employment in the event of a drop in activity, represents at this stage a cost of 180 million euros for the State, added the minister to the set of LCI, ensuring " Have no budget limit " to " save jobs ".

" Tourism, catering, events and transport are the four sectors that concern us the most, " said Muriel Pénicaud. After the emergency measures, " there will have to be a recovery plan " for the economy to " rebuild capacity, " she also said.

Asked about the level of aid released by the State after the announcements of a plan of several tens of billions of euros in Italy, Germany or the United Kingdom, Bruno Le Maire defended the French " strategy ": " La France does exactly the same thing and at the same level . " The minister hopes that "these same states" will mobilize to launch a European recovery plan. According to him, the support plan announced by Germany " goes in the right direction ".

► Also read: Headlines: French people face coronavirus

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