Thursday, 20 January, 2022

EXCLUSIVE Coronavirus: the executive releases an envelope of 20 billion to save industrial flagships


The government is putting 20 billion euros on the table for equity investments or nationalizations of companies in difficulty by the coronavirus crisis. In all, this brings the emergency plan from 45 to 100 billion euros. With such amounts, the public deficit should reach this year a level not seen since the Second World War. These forecasts are based on the assumption of a six-week confinement.

Bercy now expects a public deficit of -7.6% of GDP at the end of 2020.

The “whatever it costs” launched on March 12 by Emmanuel Macron takes on more extraordinary aspects each week. The government now estimates that the bill for its emergency plan launched to respond to the economic crisis caused by the coronavirus stands at 100 billion euros, more than double what it had announced on March 17 (45 billion). The price to pay, according to Gérald Darmanin, the Minister of Public Accounts, and Bruno Le Maire, the Minister of the Economy, questioned by “Les Echos”, to prevent “Entire sections of the French economy are swallowed up by this crisis”. In all, this budget plan therefore represents more than 4.1% of French GDP, a level higher than what Germany has forecast for the moment.

Read also:

INTERVIEW Gérald Darmanin and Bruno Le Maire: “The emergency plan has been revised to 100 billion euros”

The government is putting 20 billion euros on the table for equity investments or nationalizations of companies in difficulty by the coronavirus crisis. In all, this brings the emergency plan from 45 to 100 billion euros. With such amounts, the public deficit should reach this year a level not seen since the Second World War. These forecasts are based on the assumption of a six-week confinement.

Bercy now expects a public deficit of -7.6% of GDP at the end of 2020.

The “whatever it costs” launched on March 12 by Emmanuel Macron takes on more extraordinary aspects each week. The government now estimates that the bill for its emergency plan launched to respond to the economic crisis caused by the coronavirus stands at 100 billion euros, more than double what it had announced on March 17 (45 billion). The price to pay, according to Gérald Darmanin, the Minister of Public Accounts, and Bruno Le Maire, the Minister of the Economy, questioned by “Les Echos”, to prevent “Entire sections of the French economy are swallowed up by this crisis”. In all, this budget plan therefore represents more than 4.1% of French GDP, a level higher than what Germany has forecast for the moment.

Read also:

INTERVIEW Gérald Darmanin and Bruno Le Maire: “The emergency plan has been revised to 100 billion euros”