France has handed out some 240 billion euros to keep companies afloat during the Covid crisis, mainly in the form of state-guaranteed loans, the finance ministry says. But from the end of September the support will be tailored to benefit only the hardest-hit sectors such as tourism and culture.
Early in the coronavirus crisis, President Emmanuel Macron pledged to provide support to keep companies afloat "whatever it costs" in order to limit the damage to France's economy — the second biggest in the eurozone.
France has spent 80 billion euros — nearly 4 percent of GDP — in various support programmes for companies since then, and guaranteed another 160 billion in bank loans to businesses.
The money helped protect businesses which were forced to close during three nationwide lockdowns since the pandemic began in March 2020.
"The bill is what allowed us to save jobs, to save our companies, and to save the economy," Finance Minister Bruno Le Maire told French public radio on Monday.
Growth on the horizon
The government expects the economy to grow by 6 percent this year.
France's recovery "is going to continue," Le Maire said, in large part thanks to higher consumer spending that is helping the economy to operate "at 99 percent of its capacity".
The number of requests for the state-backed emergency loans had fallen to just 50,000 in July, compared with 500,000 last May.
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In view of the recovery, Le Maire said it was time to get out of the 'whatever it costs' frame of mind.
"That does not mean we are going to abandon companies that are still struggling," he told journalists after a meeting with business federations.
While direct payments from a solidarity fund would be phased out by the end of next month, companies in the tourism industry still struggling after that would be able to benefit from state aid specifically aimed at covering most of their fixed costs.
Health pass
Le Maire said rules introduced on 21 July requiring people to show proof of vaccination to enter public places like cafes, big shopping malls and trains had had no impact on the economy, judging by weekly payment card data.
But some sectors claim otherwise, and are actively pushing for the financial support to continue.
Cinemas were kept alive thanks to state aid but industry professionals say they suffered a "new and violent blow" when the Covid-19 health pass became mandatory to enter cinemas, theatres and other enclosed cultural venues.
The introduction of the health pass cost them "an additional €50 million" a member of the National Federation of French cinemas told the Journal du dimanche paper on Sunday.
It wants aid to be extended, and compensation for loss of earnings during the first three weeks of the health crisis.
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Café and restaurant owners have also evaluated their loss of earnings due to the health pass. On Friday, the industry's four main professional organisations presented a vast study of the summer season.
It highlighted huge disparity between small independent businesses, fast food chains, and big regional differences.
While 60 percent of restaurateurs lost at least a fifth of their turnover between July and August, more than a quarter of the sector did better than during the summer of 2019.
