France Reboot: France Unveils Huge Economic Rescue Plan

 France government unveils a 100 billion-euro ($118 billion) recovery plan aimed at creating jobs,
saving struggling businesses and pulling the country out of its worst economic slump since World
War II.

 The massive plan includes money to bring back manufacturing of medical supplies to French
factories, develop hydrogen energy, help museums and the cinema industry, train young people for
21st century jobs and hire more staff at unemployment offices.

 The economy shrank 13.8% in the second quarter, which has torpedo’s President Emmanuel Macron
grand mission to transform the French economy before his first term end in 2022.

 In a country that has long struggled to keep unemployment under 10%, the plan aims to create
160,000 jobs next year and restore France’s 2019 GDP level by 2022 — the year of the next
presidential election.

 The plan will include 40 billion euros ($47.3 billion) in aid from a European Union-wide rescue plan
approved in July.

 It will be partially funded by the European Union's $888 billion Recovery Fund and the government
won’t raise the country’s already high taxes to pay for the rest, but will issue new treasury bonds
instead.

 The French government has broken plan down to under three main headings:

 One is for jobs, including social programmes and health care – that’s around €35 billion euros.

 Another is to support business and investment in business – that’s another €35 billion. Production
taxes will be reduced by $24 billion over the next two years and small and medium-sized enterprises
are expected to be the main beneficiaries

 And the last €30 billion is going towards investing in green transition, investing in new technologies
and also in renovating processes.

 The stimulus equates to 4 percent of gross domestic product, meaning France is ploughing more
public cash into its economy than any other big European country as a percentage of GDP.

 It's also nearly four times the amount France spent to dig its way out of the 2008 Global Financial
Crisis

Reference: https://www.thehindu.com/news/international/slammed-by-virus-france-unveils-huge-
economic-rescue-plan/article32512307.ece