Yesterday evening, a recovery strategy and new aids were announced by Bercy, and in particular for the wine and spirits sector.
Bruno Le Maire and Elisabeth Borne announced yesterday the implementation of new measures to help the companies most affected by the health crisis. “In my opinion, there are three strategic issues in the coming weeks“, explained Bruno Le Maire.
The Minister of Economy and Finance is developing his recovery plan by highlighting “three strategic issues for the coming weeks“. On the one hand, Bruno Le Maire advises the French to invest “the 100 billion euros they have saved since March 2020” and at the same time assures “that there will be no tax increase“.
The strategy evoked by the minister consists of accelerating the recovery of our economy, and “disburse as quickly as possible the 100 billion euros of the recovery plan“. Thus, the third challenge is to strengthen “the equity capital of companies that need it, particularly through equity loans supported by the State“. On January 28th, Bercy will determine the terms and conditions of these loans.
Solidarity Fund: the new measures.
Concerning the solidarity fund, Bruno Le Maire announced that special measures will be taken for winegrowers, greatly weakened by the American sanctions on still wines and cognac. Thus, by justifying the loss of 50% of their revenues, they will receive compensation of 15% of their 2019 revenues up to a limit of 200,000 euros per month. If they lose 70% of their revenues, they will receive compensation of 20% of their 2019 revenues, also limited to 200,000 euros per month.
In addition, the Minister of the Economy details other changes concerning the solidarity fund, such as the one applying to the proceeds from distance and takeaway sales, which will not be included in the reference turnover for the calculation of aid under the solidarity fund. This new measure will apply as of December 2020 and this rule will be maintained for the entire duration of the solidarity fund.
Companies in sector S1 bis losing at least 70% of their turnover will be entitled to compensation covering 20% of their 2019 turnover up to a limit of 200,000 euros per month. These companies will be able to benefit from this aid as of December 2020, regardless of their size.
The government also announces the assumption of up to 70% of the fixed costs of administratively closed companies, or companies belonging to the S1 and S1 bis sector, which have a turnover in excess of €1 million per month. This exceptional aid is, in addition, to aid from the solidarity fund and will be capped at 3 million euros over the period from January to June 2021.
State-guaranteed loans and aid for the payment of contributions
For the state-guaranteed loans, the French Banking Federation has agreed that all companies wishing to do so, regardless of their activity and size, will be entitled to obtain an additional year to start repaying their loan.
The exemptions and contribution payment aid introduced in December are maintained in January. All companies in the S1 and S1 bis sector that are administratively closed or that experience a decrease of at least 50% in their turnover will continue to benefit from them.
“The State will continue to pay 100% of the compensation paid to employees”, said Elisabeth Borne, Minister of Labor, concerning totally closed and partially closed companies such as shops, now subject to curfew at 18h.
For sectors such as “hotels or event professionals, the State will continue to pay 100% of the compensation paid to employees until the end of February“. In March, the 100% coverage will be maintained for those who record a decline in turnover of 80%, while for the others, “the rest will be 15%,” detailed the minister.
For the other sectors, the minister said that “the State will continue to support them until February with a remaining 15% and from March it will rise to 40% if the health conditions are maintained”.
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