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France is responding to the serious economic and social crisis with a € 100 billion investment plan.
Paris. The French government published details of an ambitious economic development plan on Thursday. A total of € 100 billion has been earmarked for 2021 and 2022 to counter the crisis in France. In the wake of the Covid epidemic, according to the latest estimate from Insee’s Bureau of Statistics, gross domestic product is expected to drop around nine percent this year. Another 630,000 compensated unemployed are expected by the end of the year. However, overall, unemployment insurance anticipates a loss of 900,000 jobs.
According to Prime Minister Jean Castex, the extraordinary measures, which have now been adopted in the Council of Ministers under the leadership of President Emmanuel Macron, should create 160,000 additional jobs starting next year. In addition, 200,000 new training positions have already been created, especially “future-oriented professions”. But the government is not only concerned with crisis management.
In view of this economic and social crisis, the € 100 billion plan is not only aimed at preventing the worst and starting reconstruction. The course is set. And Macron knows he won’t get a remotely comparable second chance. He explicitly wanted this huge financial effort to be a big step forward in the energy transition.
Therefore, around € 30 billion of total spending and grants go to this area. Half of the remaining € 70 billion goes directly to companies or is used to develop regional infrastructure.
What exactly is assigned to which area is not always obvious when reviewing the posted plans, which could give the impression that money is suddenly raining down. And this is precisely where the state has so far skimped or reduced its financial support by referring to liberal budget bottlenecks and austerity restrictions.
In this context, it is worth mentioning the promotion of passenger and freight transport by rail with almost five billion euros. Another six billion euros are used to finance other transport policy projects, namely public transport and cycling in cities.
