During a recent progress report on the implementation of the recovery plan, Bruno Le Maire, Minister of the Economy and Finance, unveiled the addition of an extra €1 billion to support the industrial sector in order to accelerate the deployment of the French economic recovery plan.
France’s economic recovery plan, which was launched in September, aimed to bring the country out of the crisis and stimulate recovery by injecting €100 billion into the eurozone’s second largest economy. 26 billion has already been deployed since the summer of 2020, and the Minister of the Economy assured that its objective is to continue “whatever the health situation and its evolution”.
The Mayor stated that there was no need to increase the overall amount of stimulus funds because the additional money for the industrial sector would be redirected from other programmes in the recovery plan that are slower to be implemented.
This time, the government has decided to focus on the industrial sector, which is struggling to compete and is heavily dependent on aeronautics, agro-food, pharmaceuticals and luxury brands.
To this end, 600 million euros of tax credits will be dedicated to investments in the digital technologies of industrial companies. They will also benefit from an additional 150 million euros of subsidies for the expansion of their current factories and 250 million euros of additional subsidies for those who wish to relocate their factories abroad in France.
The Economy Minister also confided that the funds of the recovery programme have been deployed more quickly than expected with €11 billion spent last year and a further €16 billion already invested this year, in addition to €10 billion in tax reductions on the levies that French companies have to pay.
“We are at €16 billion as of 1 March, deployed under the recovery plan in the French economy. You can add to this the 10 billion euros of production taxes that have been committed from 1 January 2021, so you have a total of 26 billion euros of the recovery plan, out of the 40 billion that we have set ourselves as a target,” the Mayor told the press.
“The health situation must not be an obstacle to the deployment of France Relance and the deployment of the stimulus credit in the territories” he continued.
According to him, the government will certainly manage to reach its deployment target of 40 billion euros this year and the economic growth target is set at 6% this year despite the health restrictions.
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