Covid-19: aid to closed businesses will cost 1.6 billion euros per month

The note is salty but necessary.

The new support system for businesses, which provides for being able to compensate up to 20% of turnover for those that remain closed will cost the State 1.6 billion euros per month, the Minister of Economy Bruno Le Maire.

Compensation for restaurants & bars - @BrunoLeMaire: "We are changing the system. We cover all businesses without exception that are closed. Restaurants, bars, sports halls. This will cost the public finances 1.6 billion euros per month" # le79Inter pic.twitter.com/mFKsk8pe1E

- France Inter (@franceinter) November 25, 2020

"We are completely changing the system [...] to be able to cover not the smallest companies, but to cover all companies, without exception, which are closed", declared the minister on France Inter, whereas until now the solidarity fund was restricted to companies with less than 50 employees.

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200,000 companies involved

From December 1, closed companies will have the choice between flat-rate aid of up to 10,000 euros, or compensation of up to 20% of their turnover compared to that achieved last year during the same month.

This support, capped at 10,000 euros, will concern 200,000 companies, the minister said.

Small businesses and the self-employed who work but suffer a significant loss of turnover due to the Covid-19 epidemic will still be able to have access in December to a flat-rate aid of up to 1,500 euros.

The solidarity fund, created at the start of the crisis to help smaller businesses, had a budget of 9 billion euros, but the government has inflated it by more than 10 billion euros since the resurgence of the epidemic.