France launches €100bn coronavirus recovery plan

A further €35bn will go to industrial competitiveness and innovation, including €20bn in reduced production taxes for industry over two years and €1bn to help the “reshoring” of strategic businesses in sectors such as health and IT. The final €35bn is for “social and regional cohesion”, including employment projects and skills training for the young. Unlike Germany’s €130bn recovery plan, which included a cut in value added tax, France’s strategy aims primarily to boost investment rather than stimulate demand. The government expects the economy to shrink up to 11 per cent this year as a result of the pandemic and a nationwide lockdown from mid-March to mid-May, and the state has already spent tens of billions of euros to avert mass bankruptcies and a surge in unemployment.