Read news from:
Austria
SHARE
COPY LINK

FINANCE

Covid will cost France half a trillion euros in state aid and lost revenues, says government

The Covid-19 pandemic will set the French state back nearly half a trillion euros over three years in additional spending and reduced tax revenues, the government said on Tuesday.

Published: 14 April 2021 08:50 CEST
Covid will cost France half a trillion euros in state aid and lost revenues, says government
Photo: Ludovic Marin/AFP

The health crisis cost the state an estimated €158 billion in 2020, a figure set to rise to €171 billion in 2021 but then fall back to €96 billion in 2022, Public Accounts Minister Olivier Dussopt told Le Figaro daily.

The figures, which the finance ministry confirmed to AFP, bring the estimated cost of the pandemic to €424 billion between 2020 and 2022.

They include money spent on supporting the salaries of people on furlough during the pandemic and aid for companies struggling to stay afloat during the crisis.

France has borrowed heavily to try keep the economy afloat through two full nationwide lockdowns and a slew of other measures including partial lockdowns, curfews and the closure of bars, restaurants, gyms and cultural and tourist sites.

Public debt is forecast to reach 118 percent of GDP this year while the budget deficit is expected to hit 9 percent of GDP, a postwar record.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

ECONOMY

French economy beats growth forecast in first quarter

The French economy grew more than expected in the first quarter, official data showed on Tuesday, delivering good news to a government facing scrutiny over the country's huge debt pile.

Published: 30 April 2024 08:36 CEST
French economy beats growth forecast in first quarter

The eurozone’s second biggest economy expanded by 0.2 percent between January and March compared to the previous quarter, according to the INSEE statistics institute, which had previously forecast zero growth.

“To all those who want us to believe that our economy is at a standstill: facts are stubborn. French growth is progressing,” said Economy Minister Bruno Le Maire.

“This is a new sign showing the solidity of our economy,” he said, adding that the “government’s strategy is paying off.”

France’s budget deficit has overshot government estimates, undermining President Emmanuel Macron’s pledge to bring national finances back on track within the next four years.

Ratings agencies have cast doubt on the government’s debt reduction target.

The public deficit widened to 5.5 percent of gross domestic product in 2023. The government aims to reduce it to three percent by 2027.

READ MORE: How France’s bid to tackle ‘wild’ budget deficit could impact you

French debt has grown to 110.6 percent of GDP — the third biggest ratio in the European Union after Greece and Italy.

SHOW COMMENTS