France releases 100 billion euros of stimulus to revive the economy | News



PARIS (Reuters) - Le gouvernement français a détaillé jeudi son plan de relance de 100 milliards d'euros (118,3 milliards de dollars) pour effacer l'impact économique de la crise du coronavirus sur deux ans, en alignant des milliards d'euros d'investissements publics, de subventions et de réductions d'impôts.

The plan includes 35 billion euros to make the second largest economy in the euro area more competitive, 30 billion for more environmentally friendly energies and 25 billion to support employment, officials said before its presentation. official Thursday evening.

With a plan equivalent to 4% of gross domestic product, France is investing more public money in its economy than any other major European country as a percentage of GDP, one of the officials said.

President Emmanuel Macron’s government is banking on plans to bring the economy back to pre-crisis activity levels by 2022 after suffering what the finance ministry expects to be its worst recession this year. post-war period with a contraction of 11%.

The plan also aims to get Macron’s pro-business pressure back on track with already reported business tax cuts amounting to 10 billion euros per year and new public funds to give sectors a boost. industry, construction and transport in France.

Officials said the transport sector would receive € 11 billion, including € 4.7 billion targeting the rail network in particular, while energy-efficient building renovations would be boosted with € 4 billion for public buildings and 2 billion for houses.

The hydrogen industry, increasingly seen as a key element in the transition to fossil fuels, would get 2 billion euros over the two years of the recovery plan.

Another billion euros would be offered in direct aid to industrial projects, including 600 million euros to help companies relocate factories abroad to France.

Some 80 billion euros of the overall cost of the plan will weigh directly on the budget deficit, with EU subsidies offsetting 40 billion euros, officials said.

(Reporting by Leigh Thomas; Editing by Marguerita Choy)



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