Monitoring document No. 2 Coronavirus COVID-19 crisis - FRANCE - INTEREL FRANCE 04/02/2020 - Interel Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Monitoring document No. 2 Coronavirus COVID-19 crisis FRANCE INTEREL FRANCE – 04/02/2020
Table of Contents
ECONOMIC SITUATION ....................................................................................4
1. Global ....................................................................................................... 4
2. By sector ................................................................................................... 6
SANITARY SITUATION ......................................................................................7
1. Update on Government announcements - containment measures................... 7
2. Sources - documents published by the Government ....................................... 8

PARLIAMENTARY ASSESSMENT OF THE CRISIS ............................................... 10
1. Creation of an evolving information mission at the National Assembly ........... 10
2. A Senate Committee of Inquiry in the Fall ................................................... 11
BUSINESS SUPPORT MEASURES ..................................................................... 12
1. Government strategy (nationalisations, priorities, demands vis-à-vis the EU, etc.)
12
2. Cash flow announcements (loans, deferral of charges, implementation of the
solidarity fund for companies with less than one million turnover, etc.) ................ 12
3. Announcements on short-time working, working hours, holidays and rest days
14
4. Renewed "Macron" bonus ........................................................................ 15
5. Announcements on assistance to French exporting companies (foreign trade) 16
6. Government requests to companies ........................................................... 17
7. Support measures at European level .......................................................... 19
8. International measures .......................................................................... 20

SECTORAL MEASURES ................................................................................... 22
1. Support for the entire agri-food chain ........................................................ 22
2. Support for tourism stakeholders ............................................................... 23
3. Support for start-ups ................................................................................ 25
4. Support for the building and public works sector (BTP) ................................. 26
5. Support for the online sports and gaming sector .......................................... 27
6. Support for the cultural sector ................................................................... 28
2INITIATIVES BY MAJOR COMPANIES TO ASSIST THE GOVERNMENT IN THE
FIGHT AGAINST THE COVID-19 CORONAVIRUS............................................... 29
1. Textile / Cosmetics ................................................................................... 29
2. Transport ................................................................................................ 29
3. Tourism................................................................................................... 30
4. Large-scale distribution / Food................................................................... 30
5. Others..................................................................................................... 31
3ECONOMIC SITUATION
1. Global
31.03.2020: As part of a presidential visit in the department of Maine-et-Loire,
Emmanuel Macron referred to the post-crisis period and the need to relocate specific
parts of the supply-chain back in France in order to avoid being so dependent on foreign
countries: "This crisis teaches us that for certain goods, certain products, certain
materials, the strategic nature of the situation requires European sovereignty. Produce
more on national soil to reduce our dependence and thus equip ourselves over the long
term".
30.03.2020: On BFM TV (main French news channel), the Minister of Economy, Bruno Le
Maire, indicated that he would not provide a new growth forecast before the end of
the containment: "as soon as we don't know when the containment will be over, I will not
provide a new forecast. Because I think it would be irresponsible and not credible.
Nevertheless, the Minister stated again that the recession would be "much deeper"
than the -1% figure announced during the new Budgetary Draft Bill examination.
28.03.2020: As part of an interview given to Italian newspapers, the President stated his
wish to see the setting-up of a common loan for the whole European Union, despite the
reluctance of countries such as Germany: "We will not overcome this crisis without strong
European solidarity, both in terms of health and budget. This could be a common debt
capacity, whatever its name, or an increase in the EU budget to allow real support for the
countries most affected by this crisis".
27.03.2020: In a note published by the Senate Finance Committee, the hypothesis of a
GDP decline between 3% and 5% in 2020 is now confirmed. This could result in a public
deficit of 6.3% of GDP in 2020, and not 3.9% as estimated at first in the new Budgetary
Draft Bill 2020 forecasts.
26.03.2020: During a meeting of European Heads of State and Government by
videoconference on the Coronavirus, the President of the Italian Council, Giuseppe
Conte, rejected the draft conclusions drawn up by European diplomats in a press release
published in the early evening, while the meeting by videoconference was still up. While
the leaders of the 27 referred in their draft conclusions to a necessary "spirit of
solidarity", for Rome, deeds do not follow words. In the end, the 27 reached a final draft
of conclusions referring the problem back to the Eurogroup, to which they gave 15 days
to define the economic response.
While the corona bonds project was not discussed, the 27 took note of the ongoing
reflections on the role of the European Stability Mechanism (ESM) and invited the
Eurogroup to "produce results without delay and develop the necessary technical
specifications". In the absence of an agreement on the ESM and the European financial
4architecture, the 27 showed their determination to protect their economies, regarding
foreign investment.
26.03.2020: INSEE has published an economic outlook for March. While the surveys for
January and February were relatively unaffected by the effects of the Covid-19 crisis, the
results collected in March directly reflect the concerns of companies in this context.
Indeed, the survey shows a heavy drop in the business climate, which would be the
biggest monthly decline of the indicator since 1985.
Nevertheless, INSEE recalls that the collection of the March business and consumer
surveys started on February 26th 2020 and the processing of the responses was finalized
on March 23rd 2020. From now on, these business and consumer surveys should be
updated every two weeks.
25.03.2020: The leaders of nine European countries (including Emmanuel Macron and
Giuseppe Conte) called for the creation of corona bonds in a letter sent Wednesday to
the President of the European Council, Charles Michel, in order to mutualize the debts
resulting from the crisis. They called for the construction of a "common debt instrument
issued by a European institution to raise funds on the market [...] for the benefit of all
Member States [...] to cope with the damage caused by the Coronavirus". It was also
signed by the Heads of State and Government of Spain, Greece, Ireland, Belgium,
Luxembourg, Slovenia and Portugal.
24.03.2020: Christine Lagarde is reported to have asked the finance Ministers of the euro
zone to consider the exceptional issue of "corona bonds", at the monthly meeting of the
Eurogroup, which was opposed by the countries traditionally supporting budgetary
seriousness, with Germany in the lead. On the same day, Bruno Le Maire called on the
EU to assess the use of this type of financial tool to deal with the crisis.
24.03.2020: At a press conference, the Minister of the Economy said that France is facing
a violent, global and undoubtedly lasting economic shock, which should translate into a
drop in growth (by at least -1% for 2020), also specifying that this estimate should be
degraded in the coming weeks. The Minister referred to the crisis and its future impact
as "comparable only to the Great Recession of 1929".
To face this, the Government has already pledged 45 billion, but this is only a "starting
point", as this sum will most likely be exceeded. The Government also warned that after
a shock of this magnitude, activity will not return to normal "overnight". The political
responsibility is to envisage a "scenario where all sectors will have to recover".
The Minister also calls for a coordinated EU response, beyond the triggering of the
general flexibility clause (allowing additional expenditure without being called to order
under the Stability Pact) and the €750bn asset purchase announced by the ECB. He wants
the European Stability Mechanism to be engaged and calls for Europe to "learn the
lessons of this crisis, particularly with regard to the organization of its supply chains. "
• The legislative dossier of the emergency law to deal with the COVID-19 epidemic
5• Emergency legislation to deal with the COVID-19 outbreak
• Link to the 25 Ordinances issued by the Government through the Emergency
Bill
• The legislative file of the emergency organic law to deal with the COVID-19
epidemic
• Draft emergency organic law to deal with the COVID-19 epidemic
• The legislative dossier of the Amending Finance Act for 2020
• Amending Finance Act for 2020
2. By sector
29.03.2020: By an executive order published in the March 29th "Journal Officiel", the
Secretary of State for Transport Jean-Baptiste Djebbari authorized Paris-Orly airport to
temporarily suspend its commercial operations as of March 31st starting 11.30 pm.
However, the airport remains permanently accessible to State aircraft and emergency
medical rescue or medical evacuation flights. This order follows the request for the
suspension of commercial air traffic made by Aéroport de Paris on March 27th.
28.03.2020: At a joint press conference with the Health Minister Olivier Véran, the Prime
Minister took up the war metaphor of the President of the Republic, greeted the "three
lines" (1st, 2nd, 3rd), and especially the various workers of the 2nd line, including: "the
police and fire brigade, the teachers who work hard to ensure that our children continue
(...) to learn and work, the farmers who continue to feed us, the truckers who guarantee
the circulation and transport of the goods we need to continue to live, the garbage
collectors, all those who work in supermarkets or in local food shops (bakers), women and
men who ensure the continued production and distribution of electricity, drinking water,
the proper functioning of public transport, prison guards, bank branch employees".
24.03.2020: The Minister for the Economy has indicated that, for certain sectors, activity
has already come to a complete standstill: tourism, air transport, restaurants, bars,
theatres, cinemas, events... " All these sectors have a 90 to 100% drop in turnover". But
many industrial sectors are also affected: "French industry is running at 25%, some major
industrial sectors have turnover down by 80 to 85%".
6SANITARY SITUATION
1. Update on Government announcements -
containment measures
01.04.2020: During a question session with the Government in the Senate, the Secretary
of State to the Minister of the Economy and Finance, Agnès Pannier-Runacher, recalled
that the Government has no intention of requisitioning masks. The Government wishes
to increase the production of masks in France from 13.5 million units per month to more
than 40 million in April.
31.03.2020: During a presidential visit in the department of Maine-et-Loire, Emmanuel
Macron stated that Public Health France (Public Health prevention authority) would be
endowed with an exceptional public contribution of €4 billion, "to enable an increase in
the purchase of masks, respirators and medicines".
At the end of an interministerial meeting organized on 31st of March by videoconference,
Edouard Philippe reframed his ministers regarding their communication on the health
crisis. He asked them not to communicate on aspects of the health crisis management
strategy that do not fall within their area of competence and on which they have no
expertise. Above all, he said: "we are settling into a crisis that will last, in a situation that
is not going to improve quickly". He also announced that on Saturday he would hold a
"detailed press briefing" alongside his Minister of Solidarity and Health, Olivier Véran, in
order to answer "all the questions that the French legitimately ask themselves in the
clearest and most transparent way possible on masks, tests, health strategy ...".
28.03.2020: At a joint press conference with the Minister for Solidarity and Health, the
Prime Minister gave an update regarding the current health crisis and the means
implemented to curb it. He stated that this crisis was "unprecedented, for at least a
century" and that it had "become global". He also said that "the fight has only just begun;
the first 15 days of April will be even more difficult than the last 15 days".
About the crisis management, he said:
• That the country had not declared its lock-down too late, in mid-March: at that
time, France had about 8,000 people infected and less than 200 dead.
• That France was going to increase its mask production capacity, but above all that
the country had placed many orders abroad (for 1 billion masks overall, through
an "air bridge" with China to transport them);
• That France was in the process of buying light and heavy respirators in order to
improve the care of people in intensive care (Germany lent 25 respirators this
weekend, in the Grand Est region);
7• That France was going to move from 5,000 to 40,000 PCR tests by the end of
April, and that it had ordered 5 million "quick tests" that had just been
developed.
The objective, during the post-containment period, will be to carry out a massive
testing program in order to avoid a relapse of the epidemic.
27.03.2020: At a press conference following an exceptional Council of Ministers meeting,
the Prime Minister stated that the containment would be extended and would last "at
least until 15 April". A scientific committee recommendation has recently called for this
containment to be extended by 6 weeks, i.e. until the end of April. The Prime Minister
did not rule out extending the containment period "if conditions warrant".
14.03.2020: Prime Minister Edouard Philippe announced on March 14th, 2020 the
closure of all restaurants, discos, museums, shopping centers, theatres and all non-
essential public places. The closure of hotels is however excluded for the time being (cf.
decree published in the Official Journal of March 15th , 2020).
The President then spoke on March 16th to announce travel restrictions for all French
citizens. These were then tightened on March 25th, with an announcement by Edouard
Philippe:
• Companies are called upon to generalize teleworking.
• The French can only go out under certain conditions and always with an exit
certificate.
• The borders of the Schengen area have been closed.
• Cruise ships are no longer allowed to stop in French ports.
2. Sources - documents published by the Government
The various decrees and orders that set up the containment:
• Order of 14 March 2020
• Decree No. 2020-260 of 16 March 2020
• Order of 19 March 2020
• Order of 21 March 2020
• Decree No. 2020-293 of 23 March 2020
• Order of 23 March 2020
02.02.2020: The President raised the possibility of postponing the second round of
municipal elections to October during the Council of Ministers on Wednesday. The
Head of State will discuss the matter with the Presidents of the National Assembly and
the Senate, Richard Ferrand and Gérard Larcher, while the Prime Minister will discuss it
during a video conference with the leaders of the opposition. If the postponement of the
municipal elections in October is confirmed, this will entail several institutional
changes, namely the complete reorganization of the municipal elections in the 4,000
8municipalities where no list won in the first round and the postponement of the
senatorial elections in September.
18.03.2020: The postponement of the second round of municipal elections, initially
scheduled for March 22nd, 2020, was enacted by decree, and supplemented by the
emergency law to deal with the Covid-19 epidemic:
• It is postponed "at the latest" to June 2020.
• Its date will be fixed by subsequent decree.
• The closing date for the submission of nomination papers for the second round
will be known when the election date is set.
• The Government must submit to Parliament before 23rd of May 2020 a report
from the Scientific Council for Coronavirus Crisis Management on the possibility
of such a deadline.
• If the elections cannot take place in June, the first round in March 2020 will be
cancelled, and two new rounds will be held.
• In the meantime, the term of office of the municipal councilors from the previous
period is extended.
9PARLIAMENTARY ASSESSMENT OF THE
CRISIS
1. Creation of an evolving information mission at the
National Assembly
09.04.2020: Hearing of Interior Minister Christophe Castaner.
08.04.2020: Hearing of Justice Minister Nicole Belloubet.
01.04.2020: Auditioned for nearly 3 hours and a half by the members of the information
mission, the Prime Minister and the Minister of Health Olivier Véran mainly used this
occasion to explain the actions and measures taken by the Government (conditions of
state-guaranteed loans to companies, strengthening of the partial work system,
conditions of funerals, etc.). ).
They had to answer 26 questions (12 from members of the majority, 14 from members
of other political groups), and although they admitted that they did not "know
everything", they did not face radical opposition from parliamentarians (as Richard
Ferrand pointed out, this is not an inquisition tribunal).
Nevertheless, both ministers were keen to obtain clarity and precision (e.g.: Which masks
were ordered? When were they ordered? From whom? In what quantity?).
The Prime Minister said that decontainment should not "happen globally, all at once,
for everyone, everywhere, at the same time". Several scenarios for decontainment are
therefore currently being studied: regionalized, by testing policy, by age group, etc. A
strategy should nevertheless be presented in the coming days or weeks. But as of now,
the answer today is one of emergency, as well as of business survival in the storm; it is
tomorrow that we will have to think about recovery, in a concerted manner.
A number of other topics could be raised: The Prime Minister thus admitted that tracking
was not legally permitted in France, but the hypothesis of a possible use of these
geolocation data (through smartphones in particular) on the basis of a voluntary
commitment, to track the spread of the virus via everyone's contacts, can be pictured.
He also assured that the foreign investment control mechanism, reinforced by the PACTE
law, will be fully applied in order to avoid foreign "raids" during stock market
devaluations, or that the baccalaureate will not be able to take place under normal
conditions - its conditions must therefore be thought through according to the evolution
of the situation.
31.03.2020: The Conference of Presidents has decided on the main principles of this
mission, which will be officially installed on 1 April and chaired by the President of the
10National Assembly, Richard Ferrand. It will be made up of 31 members, and all the
political groups will also be represented on its Bureau - made up of 4 vice-presidents (1
LREM, 1 LR, 1 Socialist and 1 UDI-Agir) and 4 secretaries (1 MODEM, 1 LT, 1 FI and 1 GDR).
Its work will be carried out in two phases:
• Firstly, a phase of monitoring of the state of health emergency; Richard Ferrand
will act as General rapporteur during this period, assisted by the chairmen of
each committee acting as co-rapporteurs.
• Then there will be an evaluation phase of crisis management with the powers
of a committee of inquiry for a maximum period of six months, when normal
working conditions will have returned to the Assembly; a second general
rapporteur - from the opposition - will be appointed.
The mission will work by videoconference, and its meetings will be available for
retransmission. It will hear Ministers and may request additional information from the
Government and the administration by written exchanges.
24.03.2020: Announced on 17th of March at the Conference of Presidents and acted upon
at the following conference on 24th of March, the National Assembly has indeed set up a
mission to provide information on the impact, management and consequences in all its
dimensions of the COVID-19 epidemic in France.
2. A Senate Committee of Inquiry in the Fall
22.03.2020: The Senate is expected to set up a committee of inquiry regarding the
management of the crisis, but only after the crisis has passed, probably in the autumn.
Already called for by Senators LR and PS, the Senate President Gérard Larcher also agrees
with this initiative.
In the meantime, however, the Law Commission has set up a mission to monitor the
measures adopted under the Covid-19 emergency law - chaired by Philippe BAS, based
on the amendment adopted on the same text.
11BUSINESS SUPPORT MEASURES
1. Government strategy (nationalisations, priorities,
demands vis-à-vis the EU, etc.)
24.03.2020: Bruno Le Maire declared that "the public authorities will use all the
instruments at their disposal to protect our industrial heritage" whether through a capital
increase, recapitalisation or nationalisation. He targets in particular here "companies that
are part of the cultural capital of our country, companies in which we have invested a lot
of public money, particularly in the form of research tax credits, companies in which
hundreds of thousands of employees work".
The airline company Air France, which has put 80% of its employees on short-time
work, is of concern to the Government. The Minister indicated that he has already
provisions in place to support the company and that discussions were under way "on the
measures that need to be taken", specifying that alternatives to nationalisation were
possible.
• Summary of Government Support Measures
2. Cash flow announcements (loans, deferral of charges,
implementation of the solidarity fund for companies with
less than one million turnover, etc.)
01.04.2020: On 1st of April at noon, more than 200,000 companies applied for the
€1,500 aid from the solidarity fund set up by the State, said the Minister for Action and
Public Accounts, Gérald Darmanin.
31.03.2020: The Economy Minister, Bruno Le Maire, announced that the threshold for
loss of turnover giving entitlement to aid of €1,500 under the solidarity fund will be
lowered to 50% (instead of 70%) starting March. The decree, published on 31st March in
the Journal Officiel, specifying the companies eligible to the fund, will thus be amended.
In addition, the solidarity fund is increased by €500 million to €1.7 billion.
As regards loan applications, according to figures provided by the Minister of the
Economy, 21,000 companies have already applied for loans totaling EUR 3.8 billion.
30.03.2020: According to Gérald Darmanin, 507,000 companies with fewer than 50
employees have requested that their social security contribution due dates to be
postponed, which is equivalent to €3.8 billion of contributions that have not been
12deducted from the €9 billion called. However, the minister specifies that the
transformation of contribution deferrals into cancellations "is not on the agenda".
29.03.2020: Muriel Pénicaud confirmed that companies using cash-flow measures (loans,
deferral of charges, etc.) would be asked to not distribute dividends, referring to a
forthcoming text.
27.03.2020: At the Council of Ministers, Bruno Le Maire, together with Nicole Belloubet,
presented an executive order on the difficulties of companies and farms. It aims to help
companies in difficulty and crystallizes starting 12th of March 2020 the assessment of the
state of cessation of payments of companies. They can benefit from preventive measures
such as conciliation or safeguard proceedings. Firms may continue to be placed in
collective proceedings if they so wish.
The executive order also aims to strengthen the protection of employees in companies
or farms facing struggles. The wage guarantee mechanisms will be able to be triggered
without delay, and the AGS guarantee will come into effect in periods when it could not
be implemented under normal circumstances. It also adjusts the procedural rules for
greater legal certainty. It facilitates the adaptation of the duration of conciliation,
safeguard or recovery procedures to the economic situation generated by the health
situation. The time limits for accompanying measures and assistance to companies may
be longer.
24.03.2020: The Government intends to give priority to compagnies’ cash flow, "today
the number one concern of all entrepreneurs":
• A deferral of social security charges and tax charges has been initiated: with
regard to corporate income tax, companies with financial difficulties will have the
possibility of requesting a deferral of the payment of taxes due in March 2020. If
companies have already paid their March due dates, they may still have the
possibility to oppose payment or request a refund. There is also the possibility
for companies to defer all or part of the payment of their employee and employer
contributions. Employers can modulate their payment according to their needs:
amount to 0, or amount corresponding to a part of the contributions. A deferral
of payment can be granted for 3 months after the initial payment date without
penalties (Summary of measures concerning the deferral of charges)
• Specific arrangements for lending to businesses have been made:
o Exceptional State guarantee, up to €300 billion, for all companies in
need of cash. These loans, non-refundable in the first year, can reach
amounts of up to three months of turnover in 2019. They are available
from March 25th , either in banks or at the DG Treasury, depending on
the size and turnover of the companies. (The State guarantee is 90% for
companies with less than 5,000 employees and a turnover less than
13€1.5bn, 80% for companies with more than 5,000 employees and a
turnover greater than €1.5bn, and 70% for those with a turnover greater
than €5bn). Any company that does not respect the payment deadlines
will be refused the State guarantee. These loans are guaranteed by the
from a lump sum of €1500 (automatic payment by the DGFiP, at the
beginning of April). Summary of the measures concerning the solidarity
fund here.
• Solidarity Fund of €1 billion, which can be subscribed to by other players (private
companies, local authorities), to support companies with less than €1 million in
turnover and annual taxable profit of less than €60,000 (micro-entrepreneurs, very
small businesses, liberal professions), who are obliged to interrupt their activity or
have a loss of turnover of 70% compared to March 2019. These businesses will
benefit from a lump sum of €1,500 (automatic payment by the DGFiP, at the
beginning of April). Summary of the measures concerning the solidarity fund here.
25.03.2020: An ordinance must also make it possible, also for SME, the self-employed
and micro-entrepreneurs, to defer their gas and electricity bills without being penalized.
In order to prevent and limit the cessation of activity for very small businesses, this text
will prohibit the suspension, interruption and reduction of the supply of electricity, gas
and water for these businesses, and provides, if they request it, for the payment of the
corresponding bills to be staggered over time, without penalty.
It also prohibits the application of financial penalties, damages, the enforcement of
termination or penalty clauses or the activation of guarantees or sureties, due to non-
payment of rent or rental charges relating to the professional and commercial premises
of these companies. The scope of the companies concerned is the same as that of the
solidarity fund.
3. Announcements on short-time working, working hours,
holidays and rest days
01.04.2020: Muriel Pénicaud announced that the demand for short-time working was
constantly growing more than 337,000 companies want to resort to short-time working,
for a total of 3.6 million employees concerned. The estimated cost (€11 billion) for the
scheme already exceeds what had been planned by the Government.
29.03.2020: the minister announces that 220,000 companies have applied for the partial
working scheme, affecting more than 2.2 million employees. As of now, all requests are
examined within 48 hours; a posteriori checks will be made after the crisis, with possible
sanctions for companies that have applied for short-time working in an abusive
manner.
27.03.2020: The Government has issued a new ordinance specifying the conditions of
part-time work and making it possible for public enterprises.
1425.03.2020: Through an ordinance, the Government proposes derogations from the
rules relating to paid holidays, working hours and rest days for companies in sectors
particularly necessary for the security of the Nation or the continuity of economic life -
specified by decree.
• On leave, the ordinance allows the employer to impose taking of paid leave or to
modify the dates of leave already taken (limit of 6 days of leave); as well as to
impose or modify the days of rest acquired by the employee or to impose the
taking of days deposited in the time savings account (limit of 10 days of rest).
• With regard to working hours, the ordinance allows the following to be
extended: the maximum daily working time and night work up to 12 hours; the
maximum weekly working time up to 60 hours; the weekly working time over 12
consecutive weeks up to 48 hours; the weekly working time for night work over
12 consecutive weeks up to 44 hours.
• On rest, it finally allows the daily rest period to be reduced to nine consecutive
hours and to derogate from Sunday rest by allocating the weekly rest in shifts.
24.03.2020: The Minister of Economy sets up the system to allow partial
unemployment for companies for which telework is impossible. From now on, partial
unemployment concerns 730,000 employees for a total cost of €2.2 billion. A sum of €8.5
billion has been set aside in the Finances Bill. Nevertheless, the Minister already states
that "we will probably be very much above" this sum.
The arrangements provided for must be specified by ordinance and decree: the
company pays 70% of the employee's gross salary (84% of the net salary) and the
Government compensates the company at 100%. Employees with a salary at the
minimum wage level are still paid 100% in case of partial unemployment. Other are paid
84%, up to €4.5 times the amount of the minimum wage (i.e. €6,927 gross per month).
The compensation is retroactive. This applies to any company facing a loss of business
caused by the Coronavirus. The deadline is 30 days after the company has decided to
impose short-time work on its employees (Government support applies from the day the
employees were placed on short-time work).
4. Renewed "Macron" bonus
01.04.2020: The mechanism around the "Macron" bonus has been strengthened, with
the publication of the ordinance following the Council of Ministers. The ordinance
confirms the relaxation of the scheme, which is now available to all companies (with no
conditions linked to the implementation of a profit-sharing agreement), and until 31
August (instead of 30 June). The bonus may also be modulated (within the limit of
15€1,000) according to working conditions (employees physically present in the workplace
could benefit from a higher bonus than teleworking employees). Finally, for companies
that have already implemented or will implement profit-sharing agreements, the
amount of the bonus may be up to €2,000.
24.03.2020: In order to encourage companies to pay the "Macron Bonus", especially to
employees unable to telework, the Minister of Economy Bruno Le Maire announced that
the condition of having set-up a profit-sharing agreement, imposed on companies with
less than 250 employees to benefit from the tax exemption and the disassociation of this
bonus, was going to be lifted.
As a reminder, the "Macron Bonus” is a bonus that is exempt from employee
contributions and is conditionally tax-free. To be exempt, this bonus must be:
• Allocated to employees whose income does not exceed a certain limit (see
below);
• Of €1,000 maximum.
20.03.2020: During the discussion on the Finances Bill (Senate session), Secretaries of
State Olivier Dussopt and Agnès Pannier-Runacher opposed the Senate's will to integrate
a tax exemption for employee and employers’ contributions for overtime, designed for
employees mobilized during the crisis and exposed to a significant health risk (health,
transport, distribution ...), but promised in return to relax the conditions of payment of
the "Macron Bonus" to support these employees. On the same day, the Minister of the
Economy Bruno Le Maire called on companies to pay a €1,000 tax-free bonus to
employees who continue to go to work despite the spread of the Coronavirus.
5. Announcements on assistance to French exporting
companies (foreign trade)
31.03.2020: Ministers Bruno Le Maire and Jean-Baptiste Lemoyne announced a support
plan for French exporting companies. This plan aims to enable companies to deal with
the immediate consequences of the Covid-19 crisis and to bounce back internationally
once the crisis is over. It complements the emergency economic measures that have
already been in place for the past two weeks.
The plan includes 4 exceptional measures:
• The granting of State guarantees through Bpifrance Assurance Export for
guarantees and pre-financing of export projects will be strengthened in order
to secure the cash flow of exporting companies. The guaranteed quotas will thus
be raised to 90% for all SMEs and ETIs against 80% previously. The period of
16validity of export pre-financing guarantee agreements will be extended to 6
months (compared to 4 months previously).
• Current exploration insurance will be extended for one year, allowing for an
extension of the exploration period covered.
• €2 billion will be provided for short-term export credit insurance thanks to the
expansion of the Cap Francexport public reinsurance scheme. This scheme will
cover all countries in the world.
• The support and information provided by Team France Export operators
(Bpifrance, Business France and the Chambers of Commerce and Industry) will
be strengthened, in conjunction with the regions and the network of foreign
trade advisors, in addition to private support players. A specific watch on each
geographical area of interest to companies is being set up. Business France is also
adapting its existing offer in order to offer solutions to companies faced with the
impossibility of travelling abroad.
6. Government requests to companies
31.03.2020: While the Minister of Economy, Bruno Le Maire, has called on companies
using short-time working not to pay dividends, the French Association of Private
Enterprises (AFEP) refuses to apply this instruction. The AFEP proposes to favour a 20%
reduction in the amount of dividends, on the grounds that "companies do not want to
open a front with their shareholders, they legitimately expect to receive their share of
good results in 2019". On the other hand, it asks its members using the deferral of social
security or tax payments and those who have obtained state-guaranteed bank loans "to
apply the Government's decision to prohibit the payment of dividends in 2020".
Gérald Darmanin also launched an appeal for national solidarity and announced the
creation of an online donation platform to enable companies and individuals who can
do so to contribute to the solidarity effort towards those most affected by the crisis.
30.03.2020: On BFM TV (main French news channel), Bruno Le Maire pleaded for a "new
capitalism", which is "more respectful of people, more concerned with fighting
inequalities and more respectful of the environment". He also called once again on
companies to show solidarity by refraining from share buybacks, specifying that they "will
not be compatible with the benefit of support from the State treasury". The minister also
specified that the solidarity fund will be maintained as long as the state of health
emergency persists.
29.03.2020: The Government has set up a platform (solidarite-numerique.fr) to help
people who are not familiar with digital tools, particularly for their administrative
procedures, by publishing tutorials.
1727.03.2020: Adrien Taquet, Secretary of State for Child Protection and Cédric O launched
a call for solidarity to companies (see press release here) to ensure the maintenance of
schooling and activities offered to children who fall under the Child Welfare. Companies
of all sizes and individuals who are able to do so are invited to make one or more desktop,
laptop or tablet computers available to Child Welfare structures that express the need.
Donors include ACET and Microsoft.
27.03.2020: Responding to the union's call, the Minister of Labour announced that the
executive will ask "companies where the State is a shareholder, even a minority one, not
to pay dividends, at least to individuals”. Philippe Martinez, secretary general of the CGT,
said at the end of a telephone meeting between the social partners and the Elysée Palace
that a "bill" was being prepared to encourage companies not to pay dividends this year.
Bruno Le Maire then submitted a proposal to the Prime Minister, aimed at prohibiting
the combination of postponement of tax and social security payments and the payment
of dividends.
25.03.2020: The CFDT considers in a press release that it "would be neither reasonable
nor responsible for companies to pay dividends in 2020 to their shareholders" and calls
for "exceptional solidarity measures", warning that it would work within companies so
that "efforts and solidarity are well shared" by all.
24.03.2020: Bruno Le Maire calls on companies, especially the largest ones, to show
"moderation" regarding the payment of dividends. The Minister added that "this is a
time when all the money must be used to keep the company running, to ensure that it
starts up again under good conditions".
Several large groups had anticipated the call. In the aeronautics sector, which has been
hit hard, Airbus announced that it would not pay the dividends promised to its
shareholders. The aircraft manufacturer will save about €1.4 billion to strengthen its cash
flow and balance sheet. The real estate company Unibail-Rodamco-Westfield decided to
cancel half of the planned dividend.
16.03.2020: The Minister of Labor is reported to have told the leaders of employers' and
trade union organizations during a conference call that "during the current period, there
should be no redundancies". Adding "that no redundancy plan will be accepted in the
period", the Minister has not given any more information since then, focusing her
communication on the measures related to short-time working.
11.03.2020: The Government has brought together digital marketplaces to combat
online scams and deceptive marketing practices against the background of coronavirus.
Present were FEVAD, Amazon, Cdiscount, eBay and LeBonCoin, which had already been
able to ban mask advertisements.
This collaboration has continued in order to amplify the fight against "fake news" about
the pandemic, eliminate online scams, and widely disseminate health instructions. This
has resulted in the appearance on platforms of "information centres" from authority
18sources, and the prioritisation of World Health Organisation and French government sites
when a web user searches for the term coronavirus on Google, Twitter or Facebook.
7. Support measures at European level
02.04.2020: Bruno Le Maire announced that he is considering proposing to his
European counterparts a "European fund that would be limited in time with the
possibility of debt as a long-term response to the crisis". This solution aims to circumvent
the hostility of several countries, including Germany and the Netherlands, within the euro
zone to the concept of "corona bonds".
19.03.2020 : In a March 19th tweet, President Emmanuel Macron said: "I fully support the
exceptional measures taken by the ECB this evening. It is up to us European States to be
at the rendezvous through our budgetary interventions and greater financial solidarity
within the euro area. Our people and our economies need it". Read the tweet again.
On March 19th, in the hemicycle of the National Assembly, while the 2020 Finances bill
was being discussed, Minister Bruno Le Maire welcomed "the asset purchase
programme announced the day before by the European Central Bank. Thanks to this
massive programme, the ECB will be able to buy €750 billion assets with no monthly
spending ceiling. This judicious programme will help not only companies, but also States
to get through the health crisis we are experiencing. Behind this support from the ECB,
there is one main challenge: to avoid the fragmentation that threatens the euro zone and
to strengthen solidarity between the Member States. I am also pleased to note that, since
this announcement, interest rate differentials between the sovereign debts of the
Member States of the euro zone have narrowed". Read the minutes of the debate.
18.03.2020: On March 16th, the European Finance Ministers validated the emergency
plans of the various Member States. On March 17th, the European Commission
announced the closure of the EU's external borders for 30 days to combat the virus. On
March 18th, the European Central Bank (ECB) announced a €750 billion emergency plan
to buy back debt on the financial markets to reassure banks.
Validation of the European Finance Ministers' economic support plans, 16 March
• For a total amount of 2% of GDP additional to what was foreseen in Member
States' financial trajectories.
• By activating the general derogation clause of the Stability and Growth Pact
(SGP), allowing states to exceed the 3% budget deficit limit.
European Commission creates a €37 billion fund to support health systems, businesses
and workers affected by the economic downturn.
• Initially endowed with €25 billion, it was increased to €37 billion on March 13th.
19• These funds should, however, consist of the redirection of existing funds (in
particular €8 billion).
• Judged "insufficient" given the scale of the crisis (compared to €45 billion for the
French Government alone).
750 billion emergency plan by the European Central Bank
• In order to buy back state and private (corporate) debt.
• In a context of exploding public debt and rising sovereign interest rates due to
the "risk" represented by certain States such as Spain, Italy, Portugal, France...
• Short until the end of the year 2020 (i.e. March - December, 10 months)
• Possibility to focus on the countries with the most difficulties, rather than
respecting the rules for the distribution of countries according to their GDP in the
euro area.
• This sum comes on top of the €120 billion decided last week and the €20 billion
per month of European quantitative easing (QE, monetary easing) relaunched
last November by Mario Draghi.
8. International measures
30.03.2020: The Secretary of State for Europe and Foreign Affairs, Jean-Baptiste
Lemoyne, took part on 30 March in an exceptional meeting of the G20 trade ministers,
organized by the Saudi Presidency. Discussions focused on the contribution of
coordinated trade policy measures to the fight against the epidemic. A number of
commitments were adopted:
• Maintaining trade flows of medical and health products, agricultural products,
and other products essential to fight the epidemic.
• Trade facilitation, so that everyone can have access to the means to protect
people's health;
• The fact that the export restrictions that would be necessary would be
targeted, proportionate, transparent and temporary, and taken in accordance
with WTO rules;
• The commitment ensured an open, free, fair, non-discriminatory and
transparent trading system;
• The establishment of monitoring of the impact of the epidemic on trade and
investment.
Jean-Baptiste Lemoyne placed particular emphasis on the role of international trade,
both in the fight against the epidemic and in economic recovery. He reiterated the
20importance of not turning to protectionism, and of easing trade tensions pre-existing the
crisis so as not to aggravate the current situation.
The press release from the Ministry of Foreign Affairs.
26.03.2020: Emmanuel Macron participated on March 26th in a meeting of G7 leaders on
the theme of fighting the global spread of the COVID-19 pandemic. The President of the
French Republic announced that a strong initiative to support Africa in the face of the
virus would be launched. He also communicated on Twitter about a discussion he had
with US President Donald Trump. He announced that he was "preparing a new important
initiative for the next few days".
21SECTORAL MEASURES
1. Support for the entire agri-food chain
02.04.2020: The ANIA (National Association of Food Industries) conducted a survey
from March 24th to 27th with nearly 550 food companies to identify the consequences
of the crisis of Covid-19 and to identify the needs for support:
• 80% of companies anticipate a drop in turnover in March 2020. In more than a
quarter of the cases, this drop could be more than 50%.
• 45% of companies are affected by an increase in the absenteeism rate, which
averages 20%. In addition, 11% of companies are affected by the exercise of the
right of withdrawal, for an average of 13% of the workforce, and work stoppages
have been implemented in 62% of them.
• 62% of companies report that they are facing a drop in orders. 17% are
"moderately concerned" and 45% "very concerned".
• 40% of companies report supply difficulties, which are more related to
packaging than to agricultural raw materials. Logistical difficulties prevent half
of them from making deliveries to customers.
26.03.2020: During an interview on France Info, Didier Guillaume indicated "more than
100,000" registrations in 48 hours to come to the aid of farmers. The Minister also
announced the launch of a platform on the Pôle emploi website, aimed at French people
wanting to help farmers.
24.03.2020: Bruno Le Maire calls for economic patriotism and asks retailers to stock up
on French products in order to support French farmers. The Minister paid tribute to the
retailers, who have ensured the security of supply, but still calls on them "to make a new
effort" and asks them to buy "milk, fruit, vegetables, meat or fish, so that our farmers are
not penalized". But he is confident that these signs "will do so: they are united in this
crisis", indicating that they "have been playing the game perfectly since the beginning of
this crisis. "».
The Minister also said at a press conference: "All sectors are essential to our economy,"
he said. The Minister therefore does not support the definition of a list of essential
economic sectors. Instead, he is in favor of "guaranteeing a minimum economic service",
i.e. a minimum level of activity in the economy, in order to guarantee security of supply
in the sectors that are essential to daily life: electricity, drinking water, transport and
food.
22Didier Guillaume calls the French "food patriotism": "I buy French, I buy fruit and
vegetables, I buy meat, I buy fish, dairy products, whatever... J'achète français", assuring
that "That's how the machine will restart. "He goes even further and seems to be ignoring
the containment measures, asking the French people who are not active today to go out
into the fields and help the producers: "To those who are waiters in a restaurant,
hostesses in a hotel, hairdressers, to those who are no longer working, I say to them, join
the great army of French agriculture, join those who will allow us to feed ourselves in a
clean, healthy way. »
Bruno Le Maire, Didier Guillaume and Muriel Pénicaud specified in a press release the
ways in which the French can choose to strengthen the workforce in the agricultural and
agri-food chain.
In essence:
• The three ministers call for "seasonal reinforcements", referring to "immediate
food self-sufficiency", but also "production of raw materials for the autumn".
• The "seedlings that will be harvested this fall" are then mentioned as one of the
activities that urgently require manpower.
• They inform that a practical guide on safety solutions for farm workers will be
distributed "before the end of the week".
• A recruitment platform will be set up by the Ministry of Labor, with simplified
access for both the company and the candidate.
• Jobseekers or self-employed people whose activity has been impacted by the
crisis will be given priority in obtaining jobs.
• Opportunities to combine short contracts with partial activity in other sectors will
be maintained.
19.03.2020: Didier Guillaume published on March 19th on his Twitter account a mail
intended for farmers and farm workers. According to him, they are the "first link in the
food chain whose daily work is essential to feed our plates".
In this letter, the Minister sends a "message of encouragement and recognition" on
behalf of himself, the Government and France, and invites farmers to "continue [your]
essential, indispensable activities" that contribute to "the effort of the national
community". He assures that the State will be at their side. Retrieve the mail
17.03.2020: Bruno Le Maire and Didier Guillaume issued a letter of encouragement and
recognition to all actors in the supply chain.
2. Support for tourism stakeholders
02.04.2020: In order to provide cash support to impacted airlines, the Secretary of State
for Transport, Jean-Baptiste Djebbari, announced the postponement of several
23aeronautical taxes and charges. Taxes payable between March and December 2020 are
thus deferred to 2021 and 2022.
31.03.2020: Jean-Baptiste Lemoyne once again invited all tourism stakeholders to a
meeting of the Tourism Sector Committee on Tuesday March 31st to take stock of the
consequences of the COVID-19 pandemic, and of strategic issues for professionals and
travellers.
• The Secretary of State recalled the implementation of economic accompanying
measures, and in particular the 25 ordinances passed on March 25th, including
the one on the credit note valid for 18 months, specifying: "A credit note that
we wanted to be very broad, so that it takes into account not only package
holidays but also all tourist services", with the notable exception of "dry
transport", which comes under another European legal framework.
• Indeed, the reimbursement of non-theft airline tickets remains an unresolved
issue for the sector, and a point of contention between agencies and airlines
that is well addressed by the Government. It should be noted that the airlines
are requesting that the same system of credit notes in lieu of reimbursement
should also be offered for airline tickets cancelled due to the epidemic.
• Bpifrance estimates that out of the €4 billion of requests for loans guaranteed
by the State, 10% concern the tourism sector. Bpifrance has also set up the Prêt
Atout for VSEs, SMEs and ETIs affected by the crisis. According to Jean-Baptiste
Lemoyne, "€2.3 billion are currently being examined, €200 million have already
been spent". Other measures are also being studied, such as the creation of a
mediation on rents applicable in particular to tourist residences.
• Jean-Baptiste Lemoyne also spoke of the recovery after the crisis, saying that
"there will be a fear of travel" and that it will be necessary to "bring reinsurance
to tourists". A recovery plan is thus planned, involving the regions and Atout
France.
25.03.2020: At the request of the Tour Operators' and Travel Agents' Unions, the
Government has issued an ordinance "on the financial conditions for the termination of
certain tourist travel and stay contracts in the event of exceptional and unavoidable
circumstances or force majeure" which offers the possibility for intermediary holiday
rental professionals, travel agents and Tour Operators to offer vouchers to tourists in lieu
of reimbursement in order to preserve their cash flow :
• The credit note is valid for 18 months and covers all cancellations made between
the 1st of March and September 15th. It covers all-inclusive stays, but also car
rental, accommodation (hotel, camping, etc.) and stays by social and solidarity
tourism associations.
• The tour operator will have to propose a deferral solution every 3 months. The
substitute offer must include equivalent services or several stays for a lower
24amount. The customer shall be entitled to claim a refund if he has not used the
value after 18 months.
In addition to this measure, which was the most eagerly awaited by tourism
professionals, and over and above the deferral of tax and social security charges, the
Government has set up a solidarity fund that will represent about €2 billion in public
spending over two months. This solidarity fund will concern in particular businesses
whose activity has been closed, 100,000 of which are in the tourism sector.
In addition, €2 million will be mobilized by the Government to maintain jobs in the
tourism sector.
In addition, many towns and cities, such as Nice, Rennes, Toulouse and Marseilles, have
announced a deferral or suspension of the collection of tourist tax to support tourist
accommodation providers.
24.03.2020: The Secretary of State for Tourism Jean-Baptiste Lemoyne brings together
every week all the players in the tourism sector with the Tourism Sector Committee. He
also exchanges daily with the hotel and restaurant unions. Ahead of the meeting of the
Sector Committee on March 24th 2020, he stated that "if the situation were to last a
quarter, it would be around €40 billion that would evaporate" for this sector.
3. Support for start-ups
25.03.2020: Cédric O, the French Secretary of State in charge of Digital Technology, has
announced a €4 billion support plan for start-ups, which aims to complement the global
business support measures already announced by Bruno Le Maire, Gérald Darmanin and
Muriel Pénicaud.
This plan contains:
• €80 million, financed by the Programme d'investissements d'avenir (PIA) and
managed by BPI France, in order to finance bridges between two fund-raising events.
The targets of this facility are start-ups that were in the process of raising funds or were
due to raise funds in the coming months and are unable to do so due to the contraction
of venture capital. The funding takes the form of bonds with possible access to capital
and is intended to be co-financed by private investors, totalling at least €160 million.
• State-guaranteed treasury loans of up to twice the France 2019 payroll or, if
higher, 25 % of annual turnover, as for other companies.
Backed by the €300 billion Government guarantee adopted in the Amending Finance Act,
these loans are distributed by both private banks and BPI France, which is launching a
dedicated product. They are expected to represent a total of nearly €2 billion. The
guarantee can cover up to 90% of the loan and is priced at a modest cost, depending on
the maturity of the loan. More details on this guarantee in the press kit here.
25You can also read
