the cost of government support measures for businesses

Support measures for businesses in the face of the Covid-19 crisis cost the State 240 billion euros, the French Minister of the Economy, Bruno Le Maire announced on Monday.

Since March 2020, the State has put in place economic support measures which amounted to 240 billion euros, of which a third of grants and two thirds of loans, indicated the minister while must be held, the same day in Bercy, a meeting on maintaining some targeted aid for companies still in difficulty.

“Eighty (80) billion euros in subsidies, 160 billion euros in loans, that’s the bill for ‘whatever the cost'”, detailed Bruno Le Maire on France Inter, adding that the money given “to companies or employees to protect purchasing power is 80 billion euros”.

“To this are added loans, but these are loans, it has nothing to do, economically with subsidies, of the order of 160 billion euros, loans guaranteed by the State, more than other forms of loan, ”added the Minister.

According to figures from the Ministry of the Economy relayed by local media, more than 685,000 loans guaranteed by the State (PGE) have been granted for an amount of 139.3 billion euros, since the start of the health crisis. Other loans, notably participatory loans, have also been granted by the State.

The Minister of the Economy also recalled that the Solidarity Fund had cost around 35 billion euros, as did the State support for the partial activity, while the exemptions from charges amounted to 10 billion euros.

Referring to the soon end of massive aid to businesses, he highlighted the good health of the French economy, which “is running at 99% of its capacity” and the resumption of consumption to justify the end of “whatever it is.” in cost ”.

He also reported “6% growth expected for 2021”, a return to normal expected “by the end of 2021 and not early 2022” and “an unemployment rate of around 8%”.

“We are in the right direction”, assured the minister, adding that the economic improvement “will continue”, because “consumption is well oriented”.

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