“Whatever it costs “, the French economy should be supported. After more than two months of a public health crisis, the State must make choices in anticipation of an economic crisis on an unprecedented scale.
The President of the Republic had made this ” Whatever it costs “, a real mantra. The massive support for companies (partial unemployment), the self-employed and VSES (solidarity fund), households with the most disadvantaged (financial aid, financial aid to students, etc.) was doubled to a variety of measures, adopted as and to the extent that the government was aware of the magnitude of the crisis.
A new step to cushion the consequences of the economic crisis
Between the reports of social charges, tax exemptions for some sectors, the premiums for the nursing staff …, State spending has exploded, causing France to have to borrow heavily to cope with the situation.
Today, the Ministry of Economics warns that the economic crisis is only just beginning. It is now necessary to prepare the recovery, as with the plan for the car, but also cushion the consequences thereof,
Reduce spending to prepare for the future
The State must therefore refocus its priorities. It is for this reason, that the device of partial unemployment will be amended from the 1st June next. From march to April, the financing 100 % of employees in partial unemployment, it will have cost more than 24 billion euros to public finances. In a few days, 15 % of the funding should be provided by the companies themselves.
For businesses, this decision is not welcome at a time where the cash is exhausted. But the State has-t-he the choice ? The deficits are increasing, many industries will be impacted for many months or even several years (tourism, events, transport, air, …), the significant increase in unemployment seems inevitable, ….