the State will provide the financial means to avoid the “sinking” of the economy

The exceptional situation that France is going through due to the global coronavirus pandemic greatly affects the economy of the country. Before what he compared to the 1929 crisis, the Minister of Economy and Finance, Bruno le Maire, wanted to assure that the State would play its protective role.

The state will bring “The financial means necessary as long as the crisis lasts”, to avoid “A shipwreck” of the economy, he said to Sunday newspaper April 5.

According to the Minister, “Over eight days, 20 billion euros in loans” guaranteed by the state were “Requested by more than 100,000 companies”. To help companies get over the shock of containment, the government has announced that it will guarantee up to 300 billion euros in bank loans, equivalent to 15% of French gross domestic product (GDP).

In addition, 5 million employees benefit from partial unemployment and “In three days, 450,000 small businesses have applied for the solidarity fund”, said Bruno Le Maire, specifying that these devices “Will be replenished as much as necessary”.

Temporary nationalizations of large companies mentioned

The solidarity fund set up by the State provides 1,500 euros maximum compensation for small businesses having suffered at least 50% drop in turnover compared to March and April 2019, plus aid of 2,000 euros granted on a case-by-case basis for those threatened with bankruptcy.

“We have no trouble raising money in the financial markets. Our interest rates remain at reasonable levels “, said the minister, hoping that after the crisis “A recovery plan, at national and European level” allows “Restart the machine as quickly as possible”.

“I prefer that we go into debt today, avoiding a shipwreck, rather than let whole sections of our economy be destroyed”, declared Mr. Le Maire who rejects any increase in taxes.

As for large companies in difficulty, the minister said he had “Forwarded to the president and the prime minister a list of some twenty weakened strategic companies and solutions to help them: loan guarantees, capital increase, recapitalization, and, ultimately, nationalization”. “It can only be temporary nationalizations”, he continued, while the question of a nationalization of Air France, of which almost the entire fleet is grounded, is regularly raised.

He recalled that“None of the big companies that appeal to the state for their cash will have to pay a dividend” and invited the other big companies “To reduce by at least a third the payment of dividends in 2020”.

At the bedside of aeronautics and tourism

Asked about reductions in the salaries of bosses and managers, Bruno Le Maire hoped that “The leaders make an effort” Insofar as “Private employees in partial activity receive only 84% of their net remuneration”.

He said he had written to all companies in which the state had a stake in this regard and had received “Positive responses from the presidents of Air France [Benjamin Smith] and Saffron [Philippe Petitcolin] “.

Among the sectors hard hit, he cited “Aeronautics or tourism”, considering that they are going “Need special attention and a support plan”, as part of a revival in “Close European coordination”.

In terms of consumption, Mr. Le Maire highlighted the drop in “50% last week compared to 2019” bank card payments.

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