To fight against the economic consequences of the health crisis linked to the coronavirus epidemic, Bercy now anticipates a public deficit that will " probably " be higher than 3.9%, said Sunday the Minister for the Budget Gérald Darmanin.
A forecast which gets even worse compared to the estimates given at the beginning of the week. Tuesday, the minister in charge of the budget had announced that the 45 billion euros plan drawn by France was going to result in a public deficit of 3.9% of the GDP, therefore beyond the European rule of 3% up to then in force. Before the outbreak of the epidemic, the government intended to reduce the deficit to 2.2% in 2020, after 3.1% reached last year.
From now on, the government " forecasts a deficit for the moment of -3.9%, maybe it will get worse ," recognized the Minister of Action and Public Accounts during the issuance of the "Great meeting" of Europe 1. " It is not when there is a fire in the house that you have to count the liters of water ", he added, welcoming the European Commission decision on Friday to suspend fiscal discipline rules.
" We will not scrimp on the means that the state puts to not only save the lives of the French, but of course the economy and in particular businesses so that there are as few bankruptcies as possible and that all employees are protected "Assured Gérald Darmanin.
New deferral of payment of social security contributions for businesses
In this context, the government is strengthening aid to businesses. A further postponement of the payment of social contributions has been fixed for those due on April 5, announced Sunday the Ministry of Action and Public Accounts.
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In detail, the reimbursements by the State of corporate tax and VAT credits will be accelerated and the benefit of the tax credit for the employment of an employee at home " will be maintained when the provision of tutoring is carried out remotely, "the ministry said in a statement. “ Aid must go to those who need it. There should be no stowaways, "commented Gérald Darmanin on Europe 1.
The payment deadline for contributions on April 5 concerns 224,000 establishments with more than 50 employees and " those who face serious cash flow difficulties may request the postponement of all or part of their contributions ", according to Bercy. " The 490,000 self-employed workers concerned by the date of April 5 will see this deadline automatically postponed ," said the ministry.
The deferral of social contributions, already in place for companies with less than 50 employees who pay their employee contributions on March 15, represented more than 3 billion euros of carryover on the 9 billion euros of social contributions which were to be cashed initially, according to the press release.
Those planned for March 20 for 460,000 self-employed workers represent " cash assistance of 250 million euros intended for artisans, traders and liberal professions ", according to the ministry.
No more customs duties on imported alcoholic gels and masks
To cope with the difficulties linked to the slowdown or cessation of economic activity, Gérald Darmanin also announced " the possibility of requesting an early repayment of the corporate tax claims refundable in 2020 and an accelerated processing of requests for reimbursement of VAT credits ”.
Among other measures taken to speed up the fight in the " war " against the coronavirus, the minister also announced that he " obtained this weekend " that there are "no more customs duties " on hydroalcoholic gels and imported masks " so that they can be delivered as quickly as possible ".
Companies encouraged to pay a bonus to their employees
In addition, the Minister of Action and Public Accounts " welcomed " the announcement of the Auchan group, which will pay a bonus of 1,000 euros to 65,000 French employees.
" The Auchan group must know like all businesses in France major difficulties, obviously, and they have chosen to consider that the wealth of their business was their employees, " said Gérald Darmanin on Europe 1, inviting " all the companies that can do it (...) to do it ”.
