The country’s Prime Minister, Jean Castex, explained that the objective of the investment program is “to prevent our economy from collapsing and exploding unemployment”.
Castex strongly believes that greener infrastructure will help the country’s economy, rebuilding it after the coronavirus pandemic.
Breaking down the cost further, around 11 billion euros will be spent on transport, of which nearly 5 billion euros will be used only on rail infrastructure. An additional € 3.1 billion will be allocated to adopting green vehicles, such as those powered by batteries, in addition to what the plan calls “daily commuting”. This includes cycle paths and the infrastructure for recharging electric vehicles.
The remainder of the funding will be used to promote sustainable travel such as carpooling.
A total of 16 billion euros will be spent on renovating old buildings that do not meet higher energy efficiency standards. In addition, sustainable energy will also see some of that money spent. This funding will mainly be used in the public domain but around 2 billion euros will be allocated specifically to the private sector.
The recovery strategy will also focus on hydrogen infrastructure. In addition, funds will also be allocated for the sustainable disposal of waste and the decarbonisation process of the industry. Hydrogen financing will help France to align with the German hydrogen energy sector. Germany has been the European leader in hydrogen adoption and innovation, and France aims to use the funding to compete with the nation.
Mr. Castex said “there will be no tax increase” because of the funding. The stimulus package is set for two years and a third of the total fund of 100 billion euros is expected to be spent next year.