French MPs adopt third stimulus budget against Covid-19

On Thursday, members adopted the third emergency budget to support the French economy ahead of the Covid-19 crisis. In particular, the text contains about EUR 45 billion extra for tourism, the airline industry and the automobile, sectors that are severely affected by the crisis.

On Thursday evening, July 9, the National Assembly adopted a third emergency budget to meet the “outstanding crisis” of the corona virus, with a debate over the ecological equivalents of public aid granted to businesses.

This third amendment financing bill provides about € 45 billion to help tourism, car and aviation. Adopted at first reading with the votes of the majority and LR, it must now be examined by the Senate.

In total, the government has requested support from “EUR 460 billion” since the crisis began, including loans or simple government guarantees.

It is an “enormous safety net that represents more than 20% of our national wealth,” argued budget rapporteur Laurent Saint-Martin of the LREM Party.

Supervision since June 29 by deputies (and suspended due to the arrival of a new government) expects this bill to see a historic recession of 11% of gross domestic product (GDP) by 2020, a deficit that will increase further (11.5% at the end of debates ) and a public debt that swells to 120.9% of GDP.

It provides EUR 18 billion for tourism, 15 billion for aviation and shows 8 billion for the road map. It also confirms a support of € 4.5 billion to communities as their revenues melt with the crisis.

“800At least 000 job cuts “, according to LeMayor

During the debates, the Minister of Economy, Bruno Le Maire, in particular, called for a “blockage” of the “Covid debt”, a treatment with shares that could make it possible to spread its amortization in time, for example until 2042 “.

He also repeated expecting “at least 800,000 job cuts” by the end of the year.

>> Read also: Covid-19 in France: job destruction has doubled compared to last year

Several fiscal gestures were added during the discussions, intended for carers, soldiers or to support the press. However, a large number of inquiries were referred to the overall recovery plan expected at the beginning of the school year.

More insight into the ecological effects of companies

The last day of discussions was marked by a debate on ecological compensation for public support. The Assembly voted in favor of an LREM measure that required “strong” ecological commitments from large companies, with the annual publication of a “report” on their greenhouse gas reduction and a fine of € 375,000 in the event of non-publication obligations.

“An allure” and simple “green washing”, condemned the left and environmental organizations.

Deputies have also adapted the partial unemployment system and extended social regulations for Guyana and Mayotte, which extended the state of health until the end of October due to a “worrying” health situation.

The Assembly also adopted a government amendment to simplify the mobilization of the supported employment system for people with disabilities.

With AFP