Jean Castex announced, Thursday, July 30, the release of an envelope of 600 million euros for the Regions in order to preserve their investment capacities after the coronavirus crisis. 

"We are going to silence all our quarrels, all our legitimate differences [...] to show that we know how to act in the same direction", pleaded the Prime Minister before initialing this agreement with the president of the Association of Regions of France, Renaud Muselier. 

"We are very satisfied with what we have just signed", added Renaud Muselier, paying tribute to Jean Castex with whom he "in two weeks, unblocked a very complex situation, which we had not succeeded in unlock in three years ". 

The communities have nurtured relationships on alternating current with former Prime Minister Édouard Philippe and with President Emmanuel Macron. At the end of May, the Regions had slammed the door of a meeting with the government, considering themselves forgotten by an emergency plan of 4.5 billion euros mainly dedicated to municipalities and departments.  

More proximity means more efficiency.
Faced with the crisis, we will need solid, powerful regions which act with the State in the same direction.
Today, we are signing a method agreement with the @RegionsdeFrance, in confidence and responsibility. pic.twitter.com/BiW3iTtagO

- Jean Castex (@JeanCASTEX) July 30, 2020

And Emmanuel Macron had wanted in June, according to regional presidents, to condition state aid to a postponement of the regional elections, a scenario finally swept away by Jean Castex in mid-July.  

While the Prime Minister has multiplied gestures and declarations of good intentions towards the territories since taking office, reconciliation with the Regions has reinforced his strategy. 

"We take our responsibilities" 

A check for 600 million euros in investment credits is therefore provided to them, knowing that the Regions, endowed with significant skills in terms of employment, training, transport and the economy, will have to be valuable relays. in the implementation of the future recovery plan expected at the end of August. 

"Is it enough? It is never enough", smiled Renaud Muselier, who estimates at 1.2 billion euros the impact of the health crisis on the finances of the Regions. But "it is a very good decision", he again greeted.  

Another sign of appeasement is the confirmation of total compensation for the reduction in production taxes, decided by the executive to stimulate the competitiveness of companies. This clear cut of 20 billion euros directly affects the Regions, which received 7 to 10 billion, in particular with the contribution on added value (CVAE). 

"There was no question of this worsening the financial difficulties of the Regions, so we take our responsibilities", declared Jean Castex.  

The Regions will therefore be allocated an equivalent fraction of VAT, the rate of change of which will follow the dynamism at national level. 

In exchange, the Regions will commit to investing massively in the recovery, up to 20 billion euros. This will be done within the framework of the 2021-2027 State-Region plan contracts which will be discussed between September and December and whose strong axes will revolve around ecological transition, research, social cohesion, health, vocational training or further modernization of transport infrastructure. 

The Regions are also asked to supply a "safeguard fund" that can be mobilized in the event of a new crisis and to improve the equalization mechanisms between Regions.  

Finally, the Regions and the State have agreed to collaborate closely in the implementation of the recovery plan, particularly in the automotive and aeronautics sectors and in the mobilization of European funds. 

With AFP

With AFP  

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