CORONAVIRUS

A BATTLE PLAN FOR WAR

ECONOMIC AND FINANCIAL

“We are in an economic and financial war. It will be long and violent, ”warned Bruno Le Maire during a telephone press conference on Tuesday. The Minister of Economy wanted to detail the measures unveiled by Emmanuel Macron the previous evening, specifying the consequences on growth.

France's public debt is expected to exceed its GDP in 2020, due to the efforts to be made to counter the fallout from the coronavirus. This was announced by the French Minister of Finance, Bruno Le Maire, "We will be beyond 100% of public debt", recognized the Minister, without giving details on the budget deficit expected for this year where it now forecasts negative growth of -1%.

An envelope of 45 billion euros

A support plan of 45 billion euros will support businesses and employees. to limit the damage, including bankruptcies in cascade of companies, too fragile to cash a total stop of their activity for weeks. It includes the measures of partial unemployment over two months, as well as the deferral of the tax and social charges of the companies . Cancellations of charges are also envisaged.

A billion euros solidarity fund - supposed to provide them with a "safety net" - targets small businesses that have been hit hard by the crisis, notably catering, tourism and food. They will receive a lump sum of 1,500 euros. To be eligible, they will have to post a loss of 70% between March 2019 and March 2020. "If we put so much money now on the table, it is to help (the economy) to restart quickly", once the epidemic defeated, justified Mr. Le Maire. "The goal is to allow the economy to restart as soon as possible," said the minister, adding that this amount is a "first assessment" that can be reviewed if the situation requires.

Until the nationalization of a company

"No business will be left at risk of bankruptcy," promised Emmanuel Macron.

Bruno Le Maire, actually declared himself ready to use "all means" including capitalization or an equity investment to "protect" French companies threatened by the coronavirus crisis.

And if the President of the Republic refused the day before to use the word "confinement", Bruno Le Maire does not hesitate today to use another emblematic term: "nationalization." "

"I will not hesitate to use all the means at my disposal (...) This can go through capitalization or an equity investment. I can even use the term nationalization if necessary. "

To these 45 billion euros are added to the state guarantees of 300 billion euros to ensure bank loans.

"The banks will have to lend, they will have no reason to refuse loans," assured Bruno Le Maire, adding that "the time is not for dividends but support for the economy".

For Bruno Le Maire, "the protection of companies and employees is necessary in order to prevent the economic breakdown from turning into social breakdown".

Because the Minister of Economy insists: "The health war, I hope it's a matter of weeks. The economic and financial war is a matter of months. It will therefore take time to restart the economy, to give it back its full power."