With its recovery plan of 100 billion euros over two years, which it presents on Thursday, the government intends to prepare the country for the next ten years and go beyond the only rebound of the economy hard hit by the crisis of covid-19.
With its recovery plan of 100 billion euros over two years, which it presents this Thursday, the government intends to prepare the country for the next ten years and go beyond the only rebound of the economy hard hit by the crisis of covid-19.
(AFP) – “This plan does not just heal the wounds of the crisis. He is preparing for the future, ”Prime Minister Jean Castex said in an interview with Figaro, by defending a plan “equal to the exceptional situation we are going through”. In total, 100 billion euros over two years will be injected into the economy, which is expected to contract by 11% this year because of the covid-19 epidemic and the confinement decided in the spring.
The government’s objective is to return to the pre-crisis level of activity in 2022 and to start seeing unemployment fall, when it expects 800,000 job cuts this year. “I hope that the stimulus plan in 2021 will create 160,000 jobs. This is our objective, ”the Prime Minister said Thursday morning on RTL. He is counting on companies to make a strong commitment to employment.
For this, the executive promises an execution without loss of time, less than two years before the presidential election, with a steering committee, chaired by the Prime Minister, to verify the allocation of funds and redistribute them if certain projects are falling behind.
After the 460 billion euros in emergency support mobilized since the start of the crisis, the recovery plan is a medium-term investment plan, around three priorities: ecological transition, business competitiveness and social cohesion, defends Matignon.
Thirty billion euros will thus be devoted to the greening of the economy, an “unprecedented acceleration”, welcomes the government, when NGOs denounce the absence of firm conditions for aid paid to companies. Transport will benefit in particular from 11 billion euros, including 4.7 billion for the SNCF to finance rail freight, small lines and night trains.
Nearly 7 billion euros will also be allocated to the energy renovation of buildings, a sea serpent of ecological policies, including 4 billion for the public park (schools, universities, …) and 2 billion dedicated to households.
To reindustrialize the territories, the plan focuses on improving the competitiveness of companies, with 35 billion euros mobilized, including 20 billion to lower production taxes paid by companies, despite the protests of the communities which are the main ones. beneficiaries.
The rest of the envelope will support the equity capital of companies that have been damaged by the crisis, or even subsidize the relocation of activities and innovation in sectors of the future, such as artificial intelligence or quantum computing.
Faced with this debauchery of resources for businesses, the government wants to show that it has not forgotten low-income households and all those threatened with losing or not finding a job. The challenge is to create a climate of trust, we say to Matignon. Especially since the government has ruled out any measure to stimulate consumption, household incomes having been preserved by partial unemployment, even if the latter currently prefer to save in the face of health and economic uncertainties.
Thus, 35 billion euros are dedicated to social and territorial cohesion, including in particular 15 billion measures in favor of employment, of which 6.7 billion already announced this summer for young people or 6.6 billion for the system. partial activity of long duration.
Added to this are the 6 billion euros of investment in the hospital, or the revaluation of the back-to-school allowance and aid to communities.
On the whole plan, 80 billion will weigh directly on the State budget and will increase in the short term the public debt, already expected at nearly 121% of GDP this year.
However, half will be financed by subsidies from the European recovery plan, and with the exception of the reduction in production taxes, the expenses incurred will not be sustainable, we caution the government, even if we assume this strategy spendthrift. “To do nothing today would have condemned us to recession. And we know the disastrous consequences of austerity ”, defended Jean Castex in Le Figaro, by confirming the absence of tax increases.