Hit by virus, France unveils economic recovery plan
Facing resurgent PARIS — virus infections, France’s government unveiled a 100 billioneuro ($118 billion) recovery plan Thursday aimed at creating jobs, saving struggling businesses andyanking the country out of its worst economic slumpsinceWorld War II.
The massive plan includes money to bring back manufacturing ofmedical supplies to French factories, develop hydrogenenergy, helpmuseumsandthecinemaindustry, train young people for 21st century jobs and hire more staffffatunemploymentoffiffices.
“It’s an important step for ourstrategyinthefifififififightagainst the economic andsocial consequences of the crisis that hit France,” Prime Minister Jean Castex said.
Thegovernmentspenthundreds of billions of euros in emergency aid as the virus sped acrossFrance andfifilled its once-renowned hospitals earlier this year, prompting a strict two-month lockdown that nearly froze the economybut slowedthespreadof infections. More than30,600 people with the virus have died in France, among the highest death tolls inEurope after Britain and Italy.
“France held on, but it is incontestably weakened,” Castex said, and now must pullitselfoutof“anextremely suddenandbrutalrecession.” Theeconomyshrank13.8% in thesecondquarter, whichhas torpedo’sPresidentEmmanuelMacron grandmission to transform the French economy beforehisfifirst termend in 2022.
France is again seeing a growthininfectionsaftersummervacations, than7,000virus casesThursday, the highest daily rate in Europe. That is also well above the several hundred cases a day reported in May and June, when France was emergingfromlockdownand testing less. The number of people in intensive carewith thevirus isedgingup, though is far fromthe crisis levels of March and April.
Despite the rise, France’s schools reopenedtheirdoors thisweekforin-personclasses, andauthorities areencouragingpeople to returntowork.
And the government insisted Thursday it’s time to planfor thepost-virus future.
In a country that has long struggledto keep unemployment under 10%, the plan aims to create 160,000 jobs nextyearandrestoreFrance’s 2019GDP level by 2022— the year of the next presidential election.
“It’sambitiousbutperfectly withinourreach,” Castexsaid.
Called “France Reboot,” the plan will include 40 billion euros ($47.3 billion) in aid froma European Unionwiderescueplanapprovedin July. Castex said the government won’t raise the country’s already high taxes to pay for the rest, butwill issue newtreasury bonds instead.
After France financed a mass temporary unemployment scheme to keeppeople from losing their jobs amid the coronavirus lockdown, Finance Minister Bruno Le Mairepromised to “continue todothemaximum”forworkers and businesses.
About a third of the 100 billion euros will go to supportingbusinesses, athirdfor jobs and other societalmeasures and a third for reducing emissions andprotecting biodiversity.
Macronhas beencriticized for not living up to promises to fifififight climate change, and critics said despite the big price tag, Thursday’s new plan still doesn’t do enough to catchFranceupwithEuropean neighbors in terms of protecting the environment.
Others expressed concern that the money wouldn’t prevent French businesses from declaring bankruptcy or announcing mass layoffffffffffffs in the coming months.