France’s Economic Stimulus Plan Includes Spending €100 billion

PARIS, KOMPAS.com – France’s economic stimulus plan includes spending €100 billion to pull the EU country out of a deep coronavirus-induced slump.

The stimulus plan signals renewed efforts by French President Emmanuel Macron to push through a pro-business reform agenda.

An official stated that France’s economic stimulus equates to 4 percent of the country’s GDP.

It means that France is plowing more public cash into its economy than any other big European country as a percentage of GDP. A formal launch is expected on Thursday.

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France's recession, marked by a 13.8 percent second-quarter GDP contraction that coincided with the country's Covid-19 lockdown and is set to generate an 11 percent drop in 2020 as a whole, has also been one of Europe's deepest.

The stimulus package earmarks €35 billion to make the economy more competitive, €30 billion for more environmentally friendly energy policies and €25 billion for supporting jobs, officials said.

"This recovery plan aims to keep our economy from collapsing and unemployment exploding," Prime Minister Jean Castex said on RTL radio.

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He said the government aimed to create at least 160,000 jobs next year thanks to the plan.