Economic Resilience Plan: Government Ready to “Continue Efforts” for Purchasing Power

While the head of state admitted, Wednesday, March 2, that growth would be “inevitably affected”, the Prime Minister will consult businesses affected by the crisis and the social partners at the beginning of the week.

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Will the escalation of the war in Ukraine justify to reopen the chapter that the government has been trying for months of closing, after two years of Cvid-19 epidemic – that of the “whatever cost ” ? For the moment, Matignon as Bercy officially refute any parallel, the economy is far from being stopped as the first confinement, which has seen the emergence of this doctrine. But in the face of the difficulties of supplying companies and the outbreak of energy, fuel and wheat prices caused by the Russian invasion, the executive can only take the measure of the crisis.

Efforts for purchasing power? “If necessary, we will continue,” said Prime Minister Jean Castex, guest of the 13 hours of TF1, Thursday, March 3rd. “The mandate entrusted to me by the President is to protect our fellow citizens and the French economy”, assured the tenant of Matignon, taking care to specify that “the crisis we suffer is not quite the same as the health crisis “, which has dropped the GDP by 8% in 2020.” We should not be there with the Ukrainian crisis, but there will be consequences, “he admitted, then that growth was hitherto expected at 4% this year.

“The department is ironed in crisis mode, as during COVID-19,” launched the Minister of the Economy, Bruno the Mayor, in front of the press, Thursday, evoking a “mobilization of all the moments, night and Day “, at the end of a meeting with employers’ organizations (AFEP, Medef, U2P, CPME) and before interviews” with economists “next week – a format reminiscent of March 2020.

The day before, during a television speech devoted to the conflict, Emmanuel Macron had also been clear to the magnitude of the repercussions to wait. “Our agriculture, our industry, number of economic sectors suffer and will suffer (…). Our growth, today at the highest, will be inevitably affected. The rising price of oil, gas and raw materials has and will have Consequences on our purchasing power, “had detailed the head of state. “Tomorrow The price of full of gas, the amount of the heating invoice, the cost of certain products may still increase,” still warned Mr. Macron.

Gas price gel

In this context of the “economic and social resilience plan” wanted by the Head of State, Mr. Castex must meet at the beginning of the next week the representatives of the economic sectors affected by the crisis – commercial companies with Russia and Ukraine or present in these two countries – in areas as varied as aeronautical construction, agriculture, air transport, spatial or automotive industry. The Minister of Foreign Trade, Franck Riester, as the Minister Delegate to the Industry, Agnès Pannier-Runacher, have already received the major industrial sectors Tuesday and Wednesday on this subject. Enterprise side, the plan must also develop “in consultation with our European partners, in order to avoid distortions of competition,” says Matignon.

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/Media reports.