To face consequences of war in Ukraine on French economy

The measures presented Wednesday by the Prime Minister, Jean Castex, aim for a dual purpose: to alleviate the energy bill of companies in the short term and make the economy less dependent on Russia.

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Jean CASTEX presented, Wednesday, March 16, the “Resilience Plan” announced by Emmanuel Macron on March 2 to help businesses face the consequences of the war in Ukraine, with a dual objective: short-term their bill energy and make the economy less dependent on Russia. Faced with a “crisis that will settle in the long term”, the Prime Minister stressed the urgency of strengthening “France’s technological, industrial and food sovereignty”

The budget cost of these measures Friesland the 7 billion euros. The plan is partly funded by a partial report of 2021 budget appropriations. Its level, just below the threshold that would have forced the government to submit it to the vote of Parliament, allows it to assert that we have come out of the “whatever ‘It costs it “decreed two years ago, at the beginning of the pandemic of Covid-19.

Energy concentrated efforts

Energy is at the center of government policy, since the cost of all measures taken against the outbreak of prices will rise to 25 to 26 billion euros, according to the Minister of the Economy, Bruno the mayor. At the “tariff shield” limiting 4% the rise in electricity rates for individuals, traders and artisans already decided to add new aid: companies whose electricity and gas expenses represent “at least at least 3% of their turnover, and which could make losses on 2022 “, such as metallurgy, chemistry or cardboard, will benefit from” the care of half of the surplus of their energy expenditure “, announced Mr. Castex.

In addition to energy, some sectors are very exposed to Russian mineral imports and suffer from rising their classes (titanium, palladium …). Until the end of 2022, the state subsidized “up to 15% for large groups and 35% for small businesses,” detailed the Mayor.

Aids to individuals to replace individual heaters with fuel or gas will be raised by 1,000 euros from April 15, announced the Minister for the ecological transition, Barbara Pompilili, while the packages for the installation of Gas boilers will be stopped.

To these budgetary measures, according to Mr Castex, are “tools that have been proven during the health crisis,” but they will be “adapted to the specificities of this crisis”. Companies will be able to subscribe to the State secured loans (PGE) within the limit of 35% of the turnover of companies (compared to 25% before). In addition, a new EMP set at 10% of revenue will be launched at the July 1 July. Companies will also benefit from reports of payments of tax and social contributions. The long-term partial activity feature will be extended by twelve months.

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/Media reports.