And three. The deputies will examine from Monday a third budget rectified in the face of the "unprecedented crisis" of the coronavirus, in support of tourism, the automobile or aeronautics, with in debate the "ecological and social" counterparts.
The bill on the menu of the Assembly all week, subject to more than 2,000 amendments, expects a historic recession of 11% of GDP in 2020, a deficit that is still widening (11.4%) and a public debt which swells to 120.9% of GDP. And the Minister of Economy, Bruno Le Maire, anticipates the elimination of "800,000 jobs" in the coming months.
460 billion state support claimed
These forecasts remain very uncertain. Secretary of State Agnès Pannier-Runacher has already mentioned for September the presentation of a fourth rectified budget, which could incorporate broader stimulus measures. Because this amending finance bill number 3 mainly provides for "sectoral support and emergency plans": 18 billion euros for the tourism sector, one of the most affected by containment, 15 billion euros support for aeronautics or the 8 billion for the automotive plan.
This "PLFR 3" must also endorse 4.5 billion euros in state support for local authorities, when their revenues are melting with the crisis. For the most affected sectors, the government releases around 45 billion euros. And he claims since the beginning of the crisis a total support of "460 billion euros", if we include loans or simple guarantees of the State.
Which sectors to save in priority?
It is "a big text", a "taste" of the autumn budget, says general rapporteur Laurent Saint-Martin (LREM). This deputy from Val-de-Marne expects "long debates on the sectors of activity that must be saved as a priority", and heated discussions on ecological counterparts to public aid, pushed in particular by the left and the Environmental NGOs. "On this, we don't all have the same opinion in the majority," he acknowledges.
"This is not the time to lay down conditions for emergency cash flow measures", laments an LREM figure, confident however of finding "common ground", with conditionality for certain large companies. Aware of the issue, the government has stepped up interventions on this subject. The Secretary of State for Transport, Jean-Baptiste Djebbari, recently insisted on the environmental conditions of the Air France rescue plan. And the abolition of domestic airlines in France, when there is an alternative train in less than two and a half hours, will apply to all companies, he said.
Climate and wealth tax
Forty deputies, including the majority, also claim to integrate from this PLFR 3 certain legislative measures proposed by the Citizen's Climate Convention. Faced with the crisis in the building sector, an amendment by the government should moreover give rise to an environmental debate: it wishes to postpone for one year the abolition of a tax advantage on non-road diesel (GNR).
This third rectified budget will also be an opportunity for the left opposition to return to the charge for the reinstatement of the solidarity tax on wealth. A debate of "rear guard", in the eyes of the government, which excludes any tax hike. On the right, Eric Woerth (LR) criticized the "too fragmented" measures of this budget, without "overall vision", and urged the government to accelerate on its overall recovery plan, planned for the start of the school year.
The extension of the Macron premium?
During debates in committee this week, MEPs voted in particular in favor of extending the "Macron bonus" that companies can pay their employees, by extending the deadline from August 31 to December 31. This bonus, which can reach up to 1,000 euros, exempt from social security contributions and tax deductions, was created at the end of 2018 to respond to the anger of the "yellow vests".
In order to inflate the cash position of companies, the Finance Committee also voted to relax the criteria for carrying (carry back) corporate deficits when calculating corporate tax. Next week, the government could also propose incorporating new measures into this text, particularly in favor of small businesses.
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