the Face of the crisis of the sars coronavirus, the government had to, once again, revise its budget upward. A new project finance law (PLFR) will be presented today in the council of ministers. This is the third since the beginning of this crisis.
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According to the minister of Economy and Finance, Bruno Le Maire, who was interviewed Tuesday evening on RTL, the new text must correspond to the “second time of the response to the crisis”. He will have to take into account a recession, dramatic 11% of the French economy in 2020. This same recession was estimated to be only 8% at the time of presentation, there are only a few weeks of the draft law amending previous.
For all that, it is not yet time for the government to tighten the belt. About 45 billion euros have been allocated to support the sectors that are most vulnerable: “the second time it is to come to the rescue of all the sectors that are most threatened,” says the minister of the Economy.
After the more than 400 billion euros of emergency measures taken in the previous two budgets, this new amended budget will push up public support for “460 billions” of euros, said the minister.
Support tourism, the aeronautics, the small trade
In detail, the PLFR3 will include 18 billion euros of the aid plan for the tourism sector, heavily affected during the containment because of the movement restrictions and the closure, which continues in places, cafes and restaurants. The difficulties of the tourism sector should be alone amputate the GDP of almost one point this year.
The text also includes € 8 billion of the plan for the automotive industry announced in late may, the 600 million for the French Tech unveiled last Friday, the 15 billion euros of support from the aeronautical sector and the aid sector of the book unveiled Tuesday. Bercy also specifies that the text will include measures in the direction of the small business and the building.
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So that is looming bankruptcies and layoffs, the government will strengthen by approximately 5 billion euros, the scheme of partial unemployment and will unlock further 1 billion to expand aid to businesses that hire an apprentice.
Even if at Bercy, it is committed to a policy of support for “the offer” in the budget, it will also incorporate exceptional aid direct to 800,000 precarious situation of the young under 25 years of age and households.
Finally, it should endorse the support of 4.5 billion euros of State for communities, at a time when their revenue base with the crisis and where their costs are increasing to cope with the epidemic.
Recession, deficit and debt records
budgetary expenditures additional direct does not represent, in total, 13 billion euros. The rest is made up of measures of cash as deferred charges,, or secured loans.
The deployment of these billions of euros, raises, however, critical. Some areas feel forgotten, such as agriculture or public transport. The environmental NGO Greenpeace regrets, it, that next to the $ 15 billion for aircraft and $ 8 billion for the automobile, there is “always zero for the revival of the railway”, the less emitter of greenhouse gases.
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measures mass of the government, which aim to boost consumption and growth, will clearly have a cost. With tax revenues that will melt down with $ 27 billion more compared to the estimate already down from the previous amended budget, the deficit is expected to rise to 11.4% of GDP and the public debt swell to 120,9%, estimates the government.
The Bank of France, for its part, relied on a fall of approximately 10% of the French GDP, this year, penalised in particular by a decline of 9% of the consumption, the mechanical effect of the increase in household savings, which is expected to swell to 100 billion euros.
The editorial team conseilleBruno The Mayor in Figaro : “Our goal is the economic sovereignty of France,”euro Area GDP fell by 3.6% in the first quarter, according to Eurostat22 commentairesRoncevauxle 10/06/2020 at 09:17
The management of this crisis by Macron has been dictated solely by considerations of electoral and partisan : – (1) the denial, because the “guide” is always right : the borders is wrong, the virus has no passport, no pasaran the badufs, go-to-theatre-like-me-but-not-you-are-not-enough-injuries-to-this, blabla ; – (2) one realizes that the immunity of a group referred to initially is going to ultimately prevail in the passage of several tens (hundreds?) of thousands of 60 + years of age : it is the heart of target’s electoral LREM, so in disaster we decided to confine (you justify the passage by the closing imperative of the schools, because the children see you, it is very contagious) ; – (3) we water financially “French the most disadvantaged” (= the cities) while dropping the flange, because it is an electorate of conquest fundamental to Macron, who doesn’t want to leave to Mélenchon : the passage of the one or the other in the second round in the presidential election of 2022-will be played on the electorate (hence the higher bid slavish ridiculous current between LREM and BIA on the manifestations Floyd/Traoré); – (4) LREM holds the second round of the municipal governments in June because it is a requirement (unmentionable in public) only for LR, with which the agreements will be fundamental to conceal the scale of the defeat, and on the other hand continue to carry out a shared custody on the same electorate orléaniste. And “at the same time” France is ruined.
lacleestsouslepaillassonle 10/06/2020 09:04
Fillon in 2007 :
“I’m the head of a bankrupt state”. a
France had 1100 billion in debt.
today the debt is 2 464 billion and nobody talks of bankruptcy.
ottomarle 10/06/2020 at 09:03
Maintain artificially afloat industries, non-profitable, non-competitive, unsuitable, had present-day world, (and which therefore do not produce any wealth) for political reasons and social peace at the expense of taxpayers (it does not cost anything it is the state which pays) is the best way to ruin the French, for which the state is already the case.
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