France Launches State Aid Plan as Post-Pandemic Model for Europe

France finally unveiled its long-awaited plan for using state aid to prevent a wave of bankruptcies in the nation after the pandemic, hailing it as a model for the rest of Europe.

 

The innovative program, which has now been approved by the European Union, will combine private and public money to provide as much as 20 billion euros ($24 billion) to strengthen the finances of small and medium-sized companies.

The so-called participative loans adopt some of the advantages of equity and debt and are a central plank of President Emmanuel Macron’s stimulus. They are also a test case for other European governments looking for ways to keep businesses afloat when they start withdrawing their extraordinary fiscal aid.

“In terms of power and amount, this increase in private capital will be unprecedented in Europe,” French Finance Minister Bruno Le Maire said as he presented the plan in Paris. “It is an increase in capital that should be a model for other European countries so that the recovery isn’t just at a national level but also in other states.”

 

Source: hind-loan-plan-to-avert-bankruptcies

 

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