Wednesday, 26 January, 2022

Covid: Bercy aid did not increase the survival of zombie companies


The first progress report of the Business Support Measures Monitoring Committee shows that there has not been a massive use of aid from businesses in bad financial situation. More than 80% of the companies assisted also had less than 250 employees, over the period from April to September 2020.

More than 80% of the companies assisted have less than 250 employees.

For months, the state has been cascading billions over the French economy to save businesses and jobs in the face of the shock caused by the health crisis. But haven’t these wide-open aid taps also preserved “zombie companies” doomed to disappear anyway?

The first progress report of the “Committee for monitoring and evaluation of support measures for companies in the face of the Covid-19 epidemic” set up in the spring shows that companies classified in difficult financial situation by the Banque de France did not make increased use of distributed aid. “A priori, there is no support for companies that should have disappeared, even if additional reflection is still needed before concluding”, explained Tuesday Benoît Coeuré, president of this committee and former member of the executive board of the European Central Bank (ECB). Two more reports are expected by the summer.

The first progress report of the Business Support Measures Monitoring Committee shows that there has not been a massive use of aid from businesses in bad financial situation. More than 80% of the companies assisted also had less than 250 employees, over the period from April to September 2020.

More than 80% of the companies assisted have less than 250 employees.

For months, the state has been cascading billions over the French economy to save businesses and jobs in the face of the shock caused by the health crisis. But haven’t these wide-open aid taps also preserved “zombie companies” doomed to disappear anyway?

The first progress report of the “Committee for monitoring and evaluation of support measures for companies in the face of the Covid-19 epidemic” set up in the spring shows that companies classified in difficult financial situation by the Banque de France did not make increased use of distributed aid. “A priori, there is no support for companies that should have disappeared, even if additional reflection is still needed before concluding”, explained Tuesday Benoît Coeuré, president of this committee and former member of the executive board of the European Central Bank (ECB). Two more reports are expected by the summer.