Economy: companies artificially survive thanks to state aid

On the outskirts of Aix-en-Provence (Bouches-du-Rhône), Christophe Joia’s nightclub, with its 400 square meter room, has slowly been collecting dust for nine months. “Since March 14, it’s over, we haven’t welcomed anyone, it’s a ghost ship“, he laments. The director has benefited from at least 70,000 euros in government measures, between pState guaranteed loan and solidarity fund, without count partial unemployment for 15 employees. But these aids do not cover all the costs. “We’re in a coma. Are we going to wake up someday? […] If it lasts another month or two, it’s the loss of my company“, he adds.

Like this nightclub, many companies survive artificially thanks to state aid. Paradoxically, in the midst of a crisis, the number of failures is dropping sharply. Between September and November, the number of troubled businesses going into receivership fell 47% from last year, and a 34% drop in bankrupt businesses was noted. But many fear an explosion in bankruptcy filings with the end of government aid and repayment of loans.

The JT

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