France launches €100bn stimulus plan to drive Covid-19 recovery – business live


Rolling coverage of the latest economic and financial news, as Paris outlines the next stage of its battle against the coronavirus slump

  • Paris unveils economic stimulus plan worth 4% of GDP
  • Plan will boost competitiveness and encourage green energy

8.01am BST

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The plan earmarks in particular €35bn for making the euro zone’s second biggest economy more competitive, €30bn for more environmentally friendly energies and €25bn for supporting jobs, officials said ahead of its official presentation late on Thursday.

With the plan equating to 4% of gross domestic product, France is ploughing more public cash into its economy than any other big European country as a percentage of GDP, one of the officials said.

France Recovery Plan of €100bn (4% GDP) to get back to 2019 activity level in 2022
With 3 main axes:

•€30bn for energy transition

•€35bn for competitiveness & reshoring of industry

•€25bn for employment, skills, health & solidarity

The plan also aims to put Macron’s pro-business push back on track with already flagged cuts in business taxes worth €10bn euros annually and fresh public funds to give a boost France’s industrial, construction and transport sectors.

Officials said the transport sector would get €11bn with €4.7bn targeting the rail network in particular while energy-efficient building renovations would be spurred with €4bn euros for public buildings and €2bn for homes.

Related: Boris Johnson tries to calm Tory mutiny with vow to keep taxes low

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