The French government announced plans to distribute $118 billion to support job programs, green technologies, and health care. Officials said the order was made to revive the country's economy, which has been ravaged by the coronavirus pandemic, similar to other nations worldwide.
A massive financial plan
The announced recovery fund makes up approximately four percent of France's gross domestic product, which is significantly larger than other European countries. The plan aims to bring France's economy back to its state before the pandemic as early as 2022.
According to the Wall Street Journal, France's struggle with reviving its economy shows how even the countries that imposed the strictest lockdown measures find it difficult to return to their previous levels. In early March, the country implemented a strict two-month national lockdown, which ordered the closing of schools, cafes, restaurants, and non-essential shops.
The lockdown kept the country's citizens inside their homes amid the global health crisis. The swift response of the French government considerably slowed the spread of the coronavirus infection. Still, it also dealt a heavy blow to the nation's economy, shrinking it to 13.8 percent in the second quarter of this year, a number similarly recorded after the effects of World War II.
During a press briefing on Thursday, French Prime Minister Jean Castex said that while the country held on and fought off the coronavirus, it suffered drastic losses and was left severely weakened. During the event, Castex added that the recently announced recovery fund was an unprecedented move in French history due to its ambition, size, and scope.
Approximately 40 percent of the funds will be taken from the $880 billion recovery fund of Europe set up this summer. The situation provides a perfect opportunity for French President Emmanuel Macron to tout the benefits of the European Union's solidarity to the country's citizens who are more often than not, skeptical.
Getting back on its feet
A financial analyst at SpreadEx, Connor Campbell, said that European markets rushed through the gates with the hopes of stateside stimulus and actual stimulus on the continent, as reported by Business Insider.
The stimulus plans include the distribution of $41 billion to help boost the competitiveness of the economy in the euro zone, $35 billion to support environmentally-friendly energy, and $29 billion to create more job opportunities for the country's people.
The program would also support Macron's pro-business perspective, which had already incorporated $11 billion worth of tax cuts and new public funding to help several sectors, including industry, construction, and transport.
According to France24, the French's stimulus plan varies greatly with other European countries because it focuses on creating business opportunities and helps people stay employed and maintain their salaries, which aid continuous spending, resulting in positive rates for the economy.
Castex noted that while the plan was an extremely ambitious idea, it was perfectly within the country's grasp. The budget boost is worth four times the funds that France has spent for the past ten years to deal with the global financial crisis.
The additional spending also comes after the country has already spent hundreds of billions during the coronavirus pandemic's early stages.
