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