Coronavirus : the state releases a $ 600-million for the regions - The Point

" A revolution in partnership ". In order to preserve their investment capacity after the crisis of the sars coronavirus, the regions have been granted a budg

Coronavirus : the state releases a $ 600-million for the regions - The Point

" A revolution in partnership ". In order to preserve their investment capacity after the crisis of the sars coronavirus, the regions have been granted a budget of 600 million euros. An agreement hailed by the president of the Association of regions of France, Renaud Muselier, in the presence of Jean Castex. "We're going to silence all our squabbles, all our differences are legitimate (...) to show that we know how to act in the same direction," argued the Prime minister.

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"We are very satisfied of what we just sign," added Renaud Muselier, making it a tribute to Jean Castex, with whom he had " in 15 days unlocked a very complex situation that we had not managed to unlock it in three years ". The communities have nurtured relationships on ac power with the former Prime minister, Édouard Philippe, and with Emmanuel Macron.

Change of method

at the End of may, the regions had slammed the door of a meeting with the government, believing itself to have forgotten an emergency plan of 4.5 billion euros, mainly arrow to communes and departments. And Emmanuel Macron had wanted to in June, according to the presidents of region, condition the aid of the State for a postponement of regional elections, a scenario ultimately swept away by Jean Castex in mid-July.

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While Jean Castex multiplies the gestures and declarations of good intentions towards the territory since his assumption of office, the reconciliation with the regions has reinforced its strategy. A cheque of € 600 million in investment loans is made, knowing that the areas with important employment skills, training, transportation, or economy, will have to relay valuable in the future implementation of the recovery plan is expected at the end of August.

"It is a very good decision"

" Is it enough ? It is never enough ", smiled Renaud Muselier, which evaluates to 1.2 billion euros the impact of the crisis on the finances of the regions. But " it is a very good decision ", he still welcomed. Other signs of abating, the confirmation of the total compensation of the tax cuts in production decided by the executive to stimulate the competitiveness of companies. This clear-cutting of 20 billion euros comes directly reach out to the regions, which saw 7 to $ 10 billion, including through the contribution on value added (CVAE).

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"There was no question that it's coming to aggravate the financial difficulties of the regions, so we take our responsibilities," said Jean Castex. The areas will therefore affect the same fraction of the VAT, including the rate of change will follow the dynamism at the national level. In exchange, the regions will undertake to invest heavily in stimulus, up to 20 billion euros.

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It will be done in the framework of the contracts of State-region 2021-2027, which will be discussed between September and December, and that the focus will revolve around the ecological transition, research, social cohesion, health, professional training or the upgrading of transport infrastructure. It is also requested that the regions feed into a "fund safeguarding" can be mobilised in the event of a new crisis and to improve the mechanisms of equalisation between regions. Finally, regions and the State have agreed to collaborate closely in the implementation of the recovery plan, in particular in the automotive and aerospace and in the mobilization of european funds.

Updated Date: 30 July 2020, 09:33

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