France to inject Euros 100 bln to prop up economy

PARIS, April 9 (KUNA) -- France is to more than double intended emergency financing to help its economy which is already in recession and will provide Euros 100 billion (USD 110 billion) to help companies in trouble because of the impact of coronavirus, officials said Thursday.
Economy and Finance Minister Bruno Le Maire said in an interview that the government would do everything to prop up companies that have been hard hit by the confinement, which has already pushed the French economy into a six percent recession.
The Euros 100 billion will be used as fiscal and other concessions, guarantees and subsidies to alleviate companies that are unable to meet tax deadlines and other contributions because of the fall-off in activity, Le Maire told "Les Echos" newspaper.
Initially, Le Maire had promised Euros 45 billion injection but the situation has worsened for many industries and small and medium-sized companies.
Economic activity here has fallen by one third in the four weeks of almost total lockdown, a measure due to end on April 15 but which is to be extended by President Emmanuel Macron next Monday.
France's national debt is now projected to rise to 112 percent of Gross Domestic Product, from 99 percent before the coronavirus crisis.
In addition, the government deficit, which under EU rules should be kept below three percent, is set to rise to 7.2 percent. (end) jk.bs