France sees recession announces 45 bn euros in virus business aid
France has announced a package of €45 billion (approximately $51 billion USD) in aid to support businesses affected by the COVID-19 pandemic, as the country faces the possibility of recession.
The package, announced by French President Emmanuel Macron on Tuesday, includes:
- €20 billion in loans and guarantees to help small and medium-sized enterprises (SMEs) access financing.
- €10 billion in subsidies to support the hiring of new employees and the retention of existing staff.
- €5 billion in aid for the tourism and hospitality sectors, which have been particularly hard hit by the pandemic.
- €5 billion in support for the manufacturing and construction sectors.
- €5 billion in aid for the arts and culture sectors.
The package is designed to help businesses weather the economic storm caused by the pandemic, which has led to widespread lockdowns, travel restrictions, and a significant decline in consumer spending.
France's economy is expected to contract by 1.2% in 2020, according to the International Monetary Fund (IMF), making it one of the worst-performing economies in the European Union. The country's unemployment rate has also risen to 8.1%, up from 7.4% in 2019.
The aid package is part of a broader effort by the French government to support the economy and mitigate the impact of the pandemic. The government has also implemented a range of other measures, including a 100% tax credit for companies that maintain their employees' salaries, and a 50% reduction in social security contributions for businesses that reduce their workforce.
The package is expected to be approved by the French parliament in the coming weeks, and is part of a larger €100 billion stimulus package announced by the government in March.