France: the government presents its plan to revive the economy

Prime Minister Jean Castex must detail this Thursday, September 3, 2020 a new recovery plan.

Here at the Medef Summer Forum, August 26, 2020. REUTERS / Gonzalo Fuentes

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7 min

After the coronavirus crisis and confinement, the executive presents this Thursday, September 3, its plan a plan of 100 billion euros, called "France relaunch" and intended, according to Emmanuel Macron, to "prepare France for 2030".

The government wants to finance the future while facing the current crisis.

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The entourage of Jean Castex assures him: his plan will allow the French economy to rebound.

And to make up for the losses caused by the coronavirus by 2022.

The " 

 " is the right one, repeats a very close adviser to the Prime Minister.

100 billion euros is the equivalent of the 4 points of GDP lost during the crisis and the country's budget will be able to cash it, we promise at the top of the state.

►

Matignon warns that the spark must not turn into a " 

 ".

The government's idea is to invest in sectors that will be promising in ten years.

200,000 young people will, for example, be trained in professions of the future such as hydrogen or health.

What if that wasn't enough?

What if this plan came too late, as the left opposition repeats?

" 

" replies Matignon.

The government is obliged to move forward step by step in the face of a crisis which will occupy it until the next presidential election.

SME expectations

Small and medium-sized enterprises, weakened by the slowdown in activity, expect a lot from this plan to invest, until the machine starts up again.

Illustration in an SME in Tarbes, in the South-West, land of aeronautics:

In fact, we are in a phase of weak activity and where the need for investment will be colossal.

Beneficiary aeronautics

Aabla Jounaïdi

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"

First, 30 billion euros will go to the “ 

 ” of the sectors emitting the most CO2: transport, buildings, energy, industry and agriculture.

Then, 35 billion will be devoted to competitiveness and innovation.

This will involve a reduction of 20 billion euros over two years in production taxes for industries and companies of intermediate size mainly.

Production taxes are taxes on commercial and industrial land, on value added, or even on turnover, which weigh heavily on companies' accounts.

Three billion euros of this component will go to SMEs to strengthen their equity.

A billion will be invested in industrial and technological projects, in the relocation of key sectors: health, electronics, agrifood and 5G, for example.

Finally, 35 billion euros will go to employment, that of young people in particular, to training in sectors of the future such as ecological and digital transition or even health and social careers, and also to the fight against exclusion. .

This plan of 100 billion euros in total will be financed by the deficit and public budgets.

Almost half will be paid for by the European Union.

This is a very important large-scale plan because there is a shift from the traditional stimulus plan.

This inflection is excellent.

The French economy is not in very good health.

It is an average economy.

Dominique Lacoue-Labarthe, economist and professor emeritus at the University of Bordeaux

Ariane Gaffuri

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