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

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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

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

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 & solidarityhttps://t.co/YPkN1Fe05I

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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