French President Emmanuel Macron has presented a green-tinted €100 billion recovery plan to pull the country out of its economic slump and create jobs.
France’s new stimulus package of €100 billion, equalling roughly 4% of the country’s gross domestic product, is the government’s attempt to kill two birds with one stone. The hope is that it will do the intended job of re-energising a Covid-ravaged economy, as well as creating a slew of more eco-friendly practices in companies.
The two-year package programme, called France Relaunch, is a fast-moving beast and focuses on supporting growth for businesses who would receive funds on a use-it-or-lose-it basis. The plan also has €30 billion set aside to promote greener energy policies, making it one of France’s most forward-looking plans to date. The rest of the massive sum will go toward training, wage subsidies, and social initiatives such as tax cuts, with the goal of seeing 160,000 new jobs available in the upcoming year.
“Economically and socially, it is infinitely better to temporarily worsen the public finances to invest, re-arm the economy and move forward than to sink into austerity and let unemployment and human drama explode,” Castex told journalists.
The recovery package comes without a moment to spare as France and Europe brace for one of the worst recessions since World War II. An 11% decline in GDP is forecasted for this year, based on the 13.8% drop in the second quarter of 2020, and there are signs that unemployment is on the rise. The country’s debt burden sits at a whopping 120% of output, and the success of the plan hinges on European financing of up to €40 billion if it has a shot at succeeding.
This high-stakes move comes as the 2022 elections loom in the distance and could be make-or-break for Macron should he decide to run again for President. Time is of the essence if he is going to be seen as an effective reformer President with a well-defined policy makeover agenda. If all goes to plan, Macron’s record on the economy would be restored as would his pro-business stance, which has suffered from the health crisis as well as union friction. Additionally, he would no doubt benefit from the green aspects of the programme, widening his base to the younger voters who see the environment as a pressing concern.
Photo: Emmanuel Macron during a press conference outlining his government’s €100 million recovery package
Month: September 2020
25% of businesses predicted to go bust in PACA region
A representative of the 70,000 small to medium-sized enterprises in the PACA region says he does not see up to a quarter of them surviving the economic crisis triggered by the recent pandemic.
Alain Gargani, President of the Confédération des Petites et Moyennes Entreprises Sud Provence-Alpes-Côte d’Azur (CPME), told a recent press conference: “After confinement, 52% of companies were already in a difficult situation. Today, 25% of them believe that they will not pass the course.”
Factors that contribute to this doom and gloom scenario include social distancing and other health measures, teleworking, partial unemployment, as well as the less tangible but perhaps more significant psychological mindset of the business community who have lowered their expectations and are suffering crises of confidence.
Mr Gargani spoke just hours before the French Prime Minister, Jean Castex, announced his new #FranceRelance plan, a roadmap for the economic, social and ecological overhaul of the country. This plan was created after a broad national consultation was set up to learn lessons from the crisis.
Health measures such as distributing masks and gel as well as erecting social distancing barriers represent a breaking-point burden for companies already in difficulty, said Mr Gargani, who added: “It would be good if there was financial support from the government.”
He went on to talk about the pluses and minuses of telecommuting, stating that, “Teleworking is a tool for continuing to work, but there are pros and cons. Today it needs to be regulated, a framework defined with the social partners to write a roadmap on the subject.”
Whilst he appreciated the government’s stimulus packages, he acknowledged that they are short-term solutions and not terribly effective for long-term recovery. As the loans are due in March 2021, many small to medium sized business will simply not be in a position to repay, argued Mr Gargani, leaving them in a worse position than before. Therefore, he has asked that the government consider deferring payments over a longer period, he suggested 10 to 20 years, to allow recovery without the stress of trying to pay rent, employees, taxes as well as the government loans.
Without support, he foresees the closure of 5,000 businesses by Christmas, representing 15,000 jobs – a devastating blow to the local economy.
With costs for sanitary measures being “about €1,000 per month for a small business with five employees, or €12,000 per year, which represents a young person returning to work,” according to CPME representative Caroline Baron, the burden will ring the death knoll for some companies. Add telecommuting into the mix and the fear is that restaurants will also suffer. No one in offices means no one going for lunch at restaurants, leading to more closures.
To try and shore up the business community as best as possible, Mr Gargani and CPME will present a plan to set up a regional commission on 22nd September, which they hope “will lean against the commercial courts to support business leaders in difficulty before they reach the wall.”
Photo of Menton, source Pixabay
New Minister holds first press briefing
Photos: 76th anniversary of the Liberation of Monaco
A number of ceremonies have been held throughout the Principality to mark the 76th anniversary of the Liberation of Monaco, which took place on 3rd September 1944.
The occasion marked the first public responsibility for Minister of State Pierre Dartout, who presided over the ceremony on Thursday evening in front of the Monument aux Morts in the Monaco Cemetery.
The Principality was occupied from 1942 by the Italians and then by the Germans in 1943.
After a few days of clashes and fire by the Allied navy in the hills of Beausoleil, La Turbie and Mont Agel, Monaco was liberated on 3rd September 1944 by American troops and resistance forces. There were many Monegasque heroes, including René Borghini, Secretary of the Presidency of the National Council, and Esther Poggio, his liaison officer, who were arrested in Monaco in July 1944 for resistance and shot on 15th August 1944 in Nice, as was Joseph Lajoux, another Monegasque hero of the resistance.
To mark these events, and to pay tribute to the known and anonymous heroes of this period, the National Council joined in the ceremonies marking the 76th anniversary of the Liberation in front of the commemorative plaque dedicated to René Borghini and Esther Poggio at the foot of the National Council building.
National Council President Stéphane Valeri paid tribute to the resistance fighters, saying, “we remember all those who fell to liberate our countries, after the leader of France Libre called them to resist,” alluding to General de Gaulle, whose grandson, Yves de Gaulle, was present at the ceremony.
A number of remembrance ceremonies took place throughout the day, including those in Beausoleil and Cap d’Ail.
Click on photos below to enlarge…
Twins accompany Prince and Princess to film screening
Prince Albert, Princess Charlene and their children were out and about in Corsica this week to support Laurent Ballesta at the premier screening of his documentary Mediterranean Planet.
The film retraces the extraordinary 2019 scientific expedition led by the Gombessa Expeditions team to discover the unknown depths of the Mediterranean. It was both a physical and personal achievement for the team, and it benefited from the support of the Prince Albert II of Monaco Foundation and Monaco Explorations.
The princely couple, accompanied by their children Prince Jacques and Princess Gabriella, were welcomed on Tuesday 2ndSeptember in Ile Rousse, northern Corsica, by Gilles Simeoni, President of the Executive Council of the Collectivity of Corsica, and Angèle Bastiani, Mayor of Ile Rousse.
A description for the documentary film reads: “Laurent and his comrades went very far, without really leaving. They stayed at home in the Mediterranean… Where few divers venture, there are oases that seem to resist destruction and extinction. They are the last refuge for all the gone species of a coastline under pressure. Here are the portraits of these unknown inhabitants and endangered landscapes. More than a new world, it is another planet, the Mediterranean Planet.”
The documentary will be broadcasted on 19th September at 8:50pm on the ARTE channel.
A hardcopy book version of Mediterranean Planet is now available for order from the website.
© Eric Mathon / Palais Princier
Free digital revision lessons for students
More than 170 middle and high school students are taking part in digital pre-school support classes funded by the Monaco government.
Given the unprecedented situation with education amid the Covid-19 health crisis, the Monegasque Government and Extended Monaco decided to join forces with Parkours, a company specialising in school support, to offer a pre-school refresher course during the first week of September. It was made available to children who experienced difficulties during their third trimester or who simply need to revise to make their return to school easier.
The week focuses on three fundamental subjects: French, mathematics and English.
Much like distance education during confinement, daily support is provided via videoconference by student tutors selected and trained by Parkours, in groups of three to four students.
At the beginning of the week, a diagnostic test identified the areas that needed reinforcement or improvement in each child, and at the end of each session, parents receive a detailed SMS informing them of what has been achieved, followed by a full report at the end of the week.
Digital education is one of the key points of the Extended Monaco program.