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France ends crisis support for companies

France will end the crisis support it has been applying to its companies since the start of the new coronavirus pandemic.

France ends crisis support for companies
Yazar: Tom Roberts

Yayınlanma: 31 Ağustos 2021 15:49

Güncellenme: 27 Ekim 2024 08:14

France ends crisis support for companies

At the end of September, France will end the crisis support it has been applying to its companies since the start of the new coronavirus pandemic, and will only provide assistance to companies that continue to struggle. This was stated on Monday by the French Minister of Finance Bruno Le Maire. At the start of the corona crisis last spring, French President Emmanuel Macron promised that the government would provide aid to businesses to keep them afloat, "whatever it costs". The aim was to limit as much as possible the potential damage to the second largest economy in the euro area. Since then, France has spent around € 80 billion on various business support programs, representing almost 4% of gross domestic product (GDP), and has helped companies run another € 160 billion through bank loan guarantees. However, as Bruno Le Maire said, such comprehensive assistance is no longer needed at present. "However, this does not mean that we will not help companies that still have problems," he told reporters after a meeting with representatives of business associations. He added that direct payments from the Solidarity Fund, which allow quick access to finance with a minimum of related issues, will be completed by the government at the end of September. However, tourism businesses, which are still struggling with anti-pandemic measures, will be able to receive support from other state programs, where there is stricter control than in the case of the Solidarity Fund.
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