The government officially presented on Wednesday 10 June, his third project of the amended finance act of the year, intended to adapt its response economic response to the crisis of the sars coronavirus. In all, 13 billion euros of new loans which are provided to support the activity in the new text budget. They are in addition to the $ 44 billion already planned in the previous ones, to reach 57 billion euros.
Among the main measures, the part-time unemployment would, by itself, to 31 billion euros in 2020, of which two-thirds supported by the State (+ 5 billion). The remaining third is funded by the Unedic. Muriel Pénicaud, the minister of Labour, prepares, moreover, a device of support of the long-term activity for the sectors most impacted by the crisis, the activity of which could take several months yet to restart.
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The Fund of solidarity for the self-employed and liberal professions increased to 8 billion euro, as much as the exceptional medical expenses incurred in responding to the health crisis. $ 2.5 billion of the credits can also finance the stimulus plan for automobile, made of premiums for the purchase of new vehicles or of the culture sector and the press.
Among the new features, the project finance law allows, within the envelope 57 billion, to finance the funds of the State of exemptions from employers ' contributions to nearly 3 billion euros. This measure is to VSES and SMES (up to 250 employees) in the sectors of hotel, restaurant, culture, events, sport, but also air transportation for 4 months (march to June), including those who had not requested to report during the confinement. Of the sub-sectors dependent on this list, such as laundries, are expected to benefit.
As for enterprises with less than 10 employees have been banned from public facilities, in particular in the sector of retail trade non-food, such as hairdressers, they will receive a cancellation of up to 3 months. "Discounts for employer contributions on demand for small businesses (under 50 employees) who will have undergone a loss of activity greater than 50 % may also be granted," says Bercy. All companies can also benefit from spreading exceptionally long, up to 3 years, to pay the fees deferred. The companies mentioned may also be reimbursed for a portion of the social security contributions of employees who have not been put to the part-time unemployment.
A plan of support to 133 billion euros
The sectoral plans already announced by the Economy minister Bruno Le Maire, are included in part in this envelope : the support to tourism, to the automobile, but also to the aviation sector, the start-ups and technology companies, as well as that of culture. Measures to not impede the recovery in the construction have also been announced on 10 June, but without the extra envelope.
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The State also provides support to local communities by giving some of them cash advances intended to compensate for a portion of their revenue losses, for a total amount of 2.7 billion euros, in order not to stifle local investment. But, as noted by the High Council of public finances, these measures correspond to State transfers to other categories of public administrations and are therefore neutral for the government deficit. All in all, 4.5 billion mobilized for the communities, according to Bercy.
The appropriations are also provided to the public in difficulty, including to fund a premium of 200 euros to 800 000 young people under 25 years of age who have lost their job or their internship during the containment, for 155 million euros.
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© High council of public finances
No temporary reduction of VAT
these 57 billion euros it is necessary to add the measures of reports of expenses, as well as other measures, which will weigh not on the budget deficit. Their amount will reach 76.5 billion euros, bringing the total amount of the response to the crisis 133 billion, without counting the measures loan guarantees in which the envelope reaches the astronomical sum of 327 billion euros.
In total, with the collapse of economic activity due to the containment measures and social distancing, the deficit is expected to exceed 11 % of GDP and the debt reach 121 %.
In this context, Bruno Le Maire reiterated his opposition to any temporary reduction of the VAT, in contrast to Germany, which has taken such a decision to raise the consumption or is likely to boost the margins of companies. The minister of Economy and Finance estimates that this would cost too much to the State of which VAT revenues represent only 15 % of GDP, for a effectiveness is uncertain since this could be of benefit to imports. It resists still with all those who flock to unveil its recovery plan overall the French economy right now, without waiting for the return to school, as it is for the moment provided in order to avoid that the uncertainty does not immerse the activity that shows signs of restarting.
