Massive French’s government spending

French government measured that the economy through the coronavirus crisis have cost 450 billion euros the equivalent of 20% of gross domestic product. The government budgeted 110 bilion euro direct crisis support for the economy.

During the crisis, the state has fully reimbursed firms for 70% of the gross wages paid to furloughed employees, but Le Maire (french prime minister) said that the amount paid to companies would be gradually reduced.

After Franco-German outlined a grant-based recovery fund proposal, there are many countries which refused the notion of grants. EU debt to provide grants issuing common debt to fund some €500bn of grants to help member states that have been hit hard by a coronavirus. New discussion will show stability on the instability of the EU by testing finding compromise during the biggest economic crisis from WWII.

Amount which will help aerospace and automotive sector is expected to be published before the revised budget bill in June. Next steps for France will be “strong measures” for carmakers that would boost demand, but which would require them to re-locate some production in France in exchange.

Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.