Following the economic consequences generated by the health crisis, Prime Minister Jean Castex presented the “France Relance” plan on September 3, 2020, aspiring to outline the new measures for the economic reconstruction of the country. This recovery plan is in line with the objectives of the five-year plan and is the result of an unprecedented investment. Indeed, after having made 470 billion euros available to offset the consequences of the crisis, France is once again providing itself with substantial aid.
The EU at the source of the recovery plan: a historic agreement
The budget for the “France Relance” plan is 100 billion euros, including 40 billion euros financed by the European Union, in the form of funds that can be mobilized by the member states until 2026 and reimbursed until 2058. This amount granted to France follows on from the measures adopted by the historic agreement on the European Recovery Plan and the multiannual financial framework for 2021-2027 pronounced by the member states on July 21. As a result, the French economic recovery plan is one of the most ambitious in the European Union.
The main measures
The “France Relance” plan puts ecology, competitiveness and cohesion first. These three objectives of the program aim to build the France of 2030.
The government has chosen to emphasize the ecological aspect, financed by 30 billion of the total budget allocated. The main measures will concern the thermal renovation of public buildings and housing to make France “the first major European carbon-free economy”.
The “France Relance” plan also aims to strengthen France’s competitiveness by making it more attractive and innovative. Here, particular emphasis is placed on reducing taxes on production.
Finally, the recovery plan will help to counter the rise in inequalities in France by relying on cohesion and solidarity. This component is marked by investments in training for young people, support for people in precarious employment, as well as the health “Ségur”, for which 6 billion euros of the total budget will be devoted.
The organization of the recovery plan in close relationship with the regions
During the presentation of the “France Relance” plan, the Prime Minister also wished to emphasize the importance of the relationship between the French territories. As a result, local authorities will play a key role in the organization of the recovery plan as evidenced by the signing of a partnership with the Regions on July 30, 2020.