French government to lay out economic recovery plan

After a week’s delay, the French government will today present a 10-year, $117.89 billion economic recovery plan. The French economy

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Photo: REUTERS/Gonzalo Fuentes

After a week’s delay, the French government will today present a 10-year, $117.89 billion economic recovery plan.

The French economy had experienced steady growth up until the pandemic-induced shock, buttressed by strong domestic demand, private foreign investment and President Emmanuel Macron’s tax reforms and business-friendly policies. To combat the economic fallout, Paris has already implemented $544 billion worth of public spending and loan guarantees.

Together with $47 billion coming from the EU’s recently passed $2.15 trillion European Recovery Plan, France will also set aside $11.8 billion for tax cuts, $17.8 billion to boost innovation in healthcare and manufacturing and $2.5 billion for cultural and artistic purposes. The plan will work in tandem with recent mask-wearing mandates in order to preclude a viral resurgence in November.

The EU’s cohesive pandemic response could yield systemic, long-term economic changes built upon a strong public health system, perhaps pushing more global businesses to opt to work with EU nations. As France implements this long-term recovery plan and other countries follow suit, the long-term European outlook could very well see boosted competitiveness, a strengthened Euro and relatively speedy post-pandemic growth.