The word eco. Degressivity: public aid will be gradually reduced from June 1

The global health crisis is having a severe impact on economies. In France, our country was put on a drip, and from June 1, public aid will begin to decrease. (NAMTHIP MUANTHONGTHAE / GETTY IMAGES)

The word eco at the end of May, it is the word degression. The government wants to put the country back to work and ensure that businesses do not remain closed. Decryption with Isabelle Raymond, head of the eco service at franceinfo.

franceinfo: How is it going to happen?

Isabelle Raymond: It’s time to gently shut off the public aid tap, to gradually exit the “whatever the cost”. As activity picks up, the government withdraws the infusion that powers the economy. From June 1, next Tuesday therefore, businesses for example, with a few exceptions, will no longer be entitled to the corporate solidarity fund which compensated during successive closings – business losses up to a certain level.

Partial unemployment, too, will be less financially supported by the state, making it less attractive. France must be put back to work, believes the government, and for that, companies must be discouraged from remaining closed.

But will the aid safety net be loosened only very gradually during the summer?

Yes, public aid will be declining throughout the summer, until it is extinguished, normally by the fall, with a different schedule depending on the devices and sectors of activity.

But the idea is to get out of this exceptional situation and this subsidized economy. Even if certain sectors should continue to benefit from specific aid, because the recovery there will be slower, more uncertain, more distant also, in particular the sectors of events, business tourism or that of discotheques.

The government has also planned a new budget envelope to hold out for a few more months …

A new envelope of 20 billion euros has been released by the executive, including 15 and a half billion, just to finance emergency measures. This budget extension will be presented to the Council of Ministers on Wednesday, June 2, then debated by Parliament.

So will this be enough? Will household consumption, one of the engines of the economy, revive activity enough to do without all these emergency measures in the coming months, without causing an unprecedented wave of bankruptcies, in any case, this is the bet made by the government.

Moreover, the latest delivery of statistics from INSEE has not weakened his optimism. The economy contracted in the first quarter with growth in the red: – 0.1%. But Bercy remains straight in its boots and maintains its forecasts at + 5% for 2021. There is no question therefore, neither to revise its forecasts downwards, nor for the moment to put coal back in the machine. The idea of ​​a vast second stimulus plan is, for the moment in any case, excluded.

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