Bruno Le Maire, the French Minister of Economy and Finance estimated on Sunday “several tens of billions of euros” the cost of state aid to economic actors affected by the coronavirus epidemic.
"The State will be totally behind the economic players who today are in a situation of total distress", he said on France 2 adding: "The State will do what is necessary to ensure that the banks lend to businesses what they need in terms of cash. Tomorrow morning we will announce a series of additional measures. ”
According to Les Echos, the government would prepare an economic rescue plan that could amount to between 30 and 40 billion euros. As a result, a public deficit which should cross the 3% of GDP mark this year. This plan will then have to be adopted by the National Assembly despite the sanitary measures with the closure of the Hemicycle, meetings limited to less than 100 people…
The invoice gets worse
Last week, the first estimates on the support measures were estimated between 15 and 30 billion euros. But with the worsening of the situation, the bill, according to Les Echos, now amounts to between 30 and 40 billion euros.
This includes cash advances, public guarantees for loans for SMEs representing a theoretical impact of 3 billion euros but also the deferral of tax and social charges in March, which should represent an effort in cash for the State of '' an amount between 15 and 20 billion euros.
VIDEO. Macron: "The State will pay compensation to employees forced to stay at home"
The system of full coverage of partial unemployment in companies is also very expensive. The sum of 10 to 15 billion euros is mentioned if this measure is applied for more than two months.
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The implementation of daily allowances as for single women forced to keep their children without benefiting from partial unemployment should represent an amount estimated between 1.5 to 2 billion euros.
The question of self-employed and traders on hold
To this must be added parameters still unknown in this equation. What about the solidarity fund to help the self-employed or the traders and restaurateurs forced to draw the iron curtains since Sunday evening?
At the same time, the Ministry of Economy promises flexibility in the organization of stores.
Between "25 and 35% of employees" in large-scale distribution will have to stay at home to babysit their children, the Ministries of Economy and Labor are working on measures to soften the recruitment rules, but also those that supervise the work of night.