France, “facing the biggest recession since 1945”. So is the main message conveyed by Bruno Le Maire and Gérald Darmanin Ministers of the Economy and entrusted with the Budget when the new emergency plan has been announced this Thursday April 9, 2020 amid the coronavirus epidemic. While confinement is said to last beyond April 15, 2020, government anticipates a harsh recession and doubles the initially planned budget in order to get ready to start again more slowly than expected. A €100 billion relaunch plan – that can still evolve depending on the evolution of the Covid-19 health crisis.
First, both Ministers have wished to update their economic forecast. In addition to the announcement of a new budget, the government warns a drop of the Gross Domestic Product (GDP) estimated at 6% in 2020. Moreover, the public deficit should reach 7.6% with a debt of 112% on the on-going fiscal year. Last but not least, more important on a short-term, France is said to already enter a recession in the first quarter. Logic when we know the coronavirus epidemic has been identified on January 24, 2020 in France. Anyway, the government sounds the alarm about the serious recession yet to come.
— Bruno Le Maire (@BrunoLeMaire) April 9, 2020
Tweet reads: “Facing the unprecedented health crisis, we cast a wide net to save our companies and protect employment by reinforcing the emergency economy plan. It moves from 45 to €100 billion.”
At the same time of these forecasts, Bercy announces the main lines of the emergency plan. The €45 billion initially planned are now €100 billion to help and support the French economy. With such a big crisis, it’s about giving even more means to company and to postpone charges, short-time working or even solidarity funds for very small companies. in addition to “exceptional” expenses devoted to health that was said to move from €2 billion to €7 billion, Bruno Le Maire doesn’t wish to give further details about the “deconfinement” issue that is not on the agenda.
As a matter of fact, ministers are worried about variables yet to adjust. “Unknown parts remain” the Minister of the Economy says. Only certitudes, plans already considered and planned about all economic players will be massively reinforced. Moreover, France economic policy clearly chooses the debt option to better prevent “thousands of bankruptcies”. Forecasts and announces still as fickle as long as confinement lasts. And the end of the health and economic crisis doesn’t spring out.
