On Thursday, Prime Minister Jean Castex announced the release of a € 600 million envelope to support regional investment to revive the post-health crisis.
Jean Castex announced on Thursday, July 30, the release of an envelope of 600 million euros for the regions to preserve their investment capacity after the coronavirus crisis.
“We will silence all our battles, all our legitimate differences […]to show that we know how to act in the same direction, “the Prime Minister pleaded before signing this agreement with the President of the French Association, Renaud Muselier.
“We are very pleased with what we have just drawn,” said Renaud Muselier, praising JeanCastex, with whom he “in two weeks blocked a very complex situation, which we had not been able to remove for three years”.
Societies have given up on alternating power relations with former Prime Minister Édouard Philippe and with President Emmanuel Macron. By the end of May, the regions had opened the door to a meeting with the government and considered themselves forgetting an emergency plan of 4.5 billion euros, mainly intended for municipalities and departments.
More proximity means more efficiency.
In the face of the crisis, we will need solid, powerful regions that act with the state in the same direction.
We sign today with @RegionsofFrance an agreement on method, in trust and responsibility. pic.twitter.com/BiW3iTtagO
– Jean Castex (@JeanCASTEX) July 30, 2020
And in June, Emmanuel Macron, according to regional presidents, wanted to withhold state aid in a postponement of regional elections, a scenario that was finally swept away by Jean Castex in mid-July.
While the Prime Minister has multiplied gestures and declarations of good intentions towards the territories since he took office, reconciliation with the regions strengthens his strategy.
“We take our responsibility”
A EUR 600 million check in investment credit is therefore provided to them, knowing that the regions, which have significant skills in employment, education, transport and even the economy, must be valuable relays. in the implementation of the future recovery plan expected at the end of August.
“Is that enough? It’s never enough,” smiled Renaud Muselier, who estimates the 1.2 billion euro impact of the health crisis on the regions’ economy. But “it’s a very good decision,” he greeted again.
Another sign of regret is the confirmation of total compensation for the reduction of production taxes, which was decided by the CEO to stimulate the competitiveness of companies. This clear cut of EUR 20 billion directly affects the regions, which received EUR 7 to 10 billion, in particular with the VAT contribution (CVAE).
“There was no question that this exacerbated the regions’ economic difficulties, so we take our responsibility,” Jean Castex explained.
The regions will therefore be allocated a corresponding fraction of VAT, the degree of change of which will follow the dynamics at national level.
In exchange, the regions will commit to investing heavily in the recovery, up to EUR 20 billion. This will be done within the framework of the 2021-2027 state regional planning agreements which will be discussed between September and December and whose strong shoulders will revolve around ecological transition, research, social cohesion, health, vocational training and even more. modernization of transport infrastructure.
The regions are also called upon to provide a “protection fund” that can be mobilized in the event of a new crisis and to improve the equalization mechanisms between the regions.
Finally, the regions and the state have agreed to work closely together to implement the recovery plan, in particular in the automotive and aviation sectors and for the mobilization of European funds.