France: to accelerate the recovery, the government waits for savings to be spent

French Minister of the Economy Bruno Le Maire during a press conference in Paris, January 14, 2021. AFP - THOMAS COEX

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Despite fears of new health restrictions, the French government wants to speed up the economic recovery.

To boost its recovery plan of 100 billion euros by 2022, the French are asked to spend the savings stored since the start of the epidemic. 

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Last year, French households garnered additional savings of 100 to 120 billion euros, according to the Banque de France.

It could even reach 200 billion by the end of the year.

Encouraging the French to spend this money, this is the new challenge of the Minister of the Economy Bruno Le Maire.

 Now is the time,” he

says.

There is no question of waiting to deploy the stimulus.

The first guarantee that the French will go and consume at least part of this savings is the assurance that we must give them that we will not increase taxes.

 "

No taxation of savings, therefore, but consumption for the benefit of growth.

This is also the objective sought for the 100 billion euro recovery plan, the deployment of which should accelerate.

The plan has three components: industrial investment,

ecological transition

, training and youth employment.

No additional credits

This plan is already yielding very tangible results, according to the Minister of the Economy.

Youth unemployment remains contained, electric vehicles are on the rise and new

rail links are

emerging.

On the other hand, there is no question of adding additional credits to this plan.

The goal is to spend existing credits quickly and efficiently. 

 To listen: [Series] Recovery plan: the first “green” hydrogen plant

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