France - Covid 19 Response

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Contributors
Fiscal Measures

1. Spending Measures (Budget Allocations)

More than €410 billion to help directly or indirectly the vast majority of the French companies and independent workers.

https://www.economie.gouv.fr/coronavirus-soutien-entreprises

2. Tax Measures (Deferral of Payroll Tax Obligations, Extensions of Tax Filing Deadlines)

3. Subsidies to Preserve Jobs, Employee Benefits, Food Assistance

  • Simplification of access to short-time work and reduced working hours (€24 Billion budget for 8,7 million employee).
  • Support of the status of the remaining dependent in case of partial unemployment and reduction of working time,
    https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000041755956&dateTexte=&categorieLien=id
  • The employee is paid an indemnity of 84% of its net hourly salary or 100% of SMIC. The maximum period for partial work has been extended to 12 months,
  • Implementation of systematic telework for employees with access to it (L 1222-9 labor code),
  • No waiting period for sick leave, and facilitated work stoppage for employees with young children who cannot telework,
  • Extension of compensation for the unemployed at the end of their rights; maintenance of the rights of social security contributors and their access to healthcare,
  • Deferral, on request, of the payment of the next social security installments,
  • Deferral, on request, of the payment of the next pension funds installments,
  • Food aid: continuation of food distribution activities; continuation of donations and food collection. The business aid scheme will also apply to associations, particularly food aid associations. The family allowance fund will be able to release individual emergency financial aid.
    https://solidarites-sante.gouv.fr/actualites/presse/communiques-de-presse/article/communique-de-presse-covid-19-maintien-de-l-aide-alimentaire-31-mars-2020

4. Public Loan Guarantees and Expansion of Loans to Businesses

  • €300 billion to guarantee new bank loans (up to €5 million) to companies having less than 5000 employees and 1,5 Billion turnover. Loan up to € 15 Million for larger companies (and more for large groups).
  • €500 million of refundable advance for companies that have been turned down for new loans.
  • €1 Billion for the economic development funds in order to help large companies (ETI).
  • €20 Billion to support strategic business (by way of purchase of shares by French state).
  • Bounce-back loan between €10,000 and €300,000, on seven years, with two years of deferral
  • €80 million allocated to finance bridges which can range from €100,000 to €5 million, with possible access to capital, and co-financed by private investors.
  • A solidarity fund of around €7 billion (very small business) which will make it possible to allocate a monthly grant of between €1500 and €5000 depending on compliance with a number of criteria (including 50% decrease of turnover), https://www.economie.gouv.fr/coronavirus-soutien-entreprises
    https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000041768315&dateTexte=
  • Deferral of rent and water bills electricity (again for small businesses) https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000041755842&dateTexte=&categorieLien=id

5. Student Loan Relief

6. Insolvency Law Relief

  • Pre-insolvency proceedings (conciliation) are extended by 3 months after the end of the state of emergency and it is possible to reopen a conciliation without waiting for the end of the 3-month period following the end of a first conciliation.
  • The manager is not obliged to declare the cessation of payments within the usual delay of 45 days and can wait until the end of the health emergency (better to discuss that with your advisor).
  • Observation periods during safeguard and administration proceedings are extended by 1 month after the end of the state of emergency.
  • Continuation plans during safeguard and administration proceedings are extended by at least 3 months after the end of the state of emergency and even by one year (on request of the Public Prosecutor).
  • Vast majority of the deadlines of the proceedings are extended by 3 months after the end of the state of emergency.
  • Proceedings are dematerialized before the commercial court, in particular for the opening of proceedings and hearings.
  • The wage guarantee insurance will be notified immediately in the event of the opening of proceedings in order to speed up the handling of cases.
Monetary & Macro Financial Measures

1. Reduction of Interest Rates

N/A

2. Expansion of Central Bank’s Holdings of Government Bonds

Yes - All this is part of the European plan to restructure European countries

€750 billion announced by the European Central Bank (ECB) to buy government and corporate bonds to assist sovereign debt markets.

3. Other Measures to Support Flow of Credit

4. Suspension of Foreclosures/Evictions

5. Reductions/Suspensions of Mortgage Payments

No specific measures yet

6. Asset Purchases (Liquidity Facilities, Purchase of Private and Public Sector Securities, Acquiring Equity of Larger Affected Companies)

N/A

7. Exchange Rate Adjustments

N/A

Health Policy Responses

1. Social Distancing

  • Strict confinement of all the population: obligation to have a signed certificate to be completed for outings (purchase of necessities, doctor's appointments, going to work if you cannot telework, etc.).
  • In the event of non-compliance with the prohibitions: fixed fine (€135) and up to jail sentence.
  • State of health emergency declared for two months (until 24 May 2020 for the whole territory). This law gives the Prime Minister the right to take by order (ordonnance) the measures listed by the law (confinement at home, banning all gatherings, measures to control the prices of certain products) not asking the pre-approval of the parliament.
    https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000041746694&dateTexte=20200403

2. Closure of Public Places for Gathering

All public places are closed.

3. Closure of Non-Essential Businesses

All non-essential business are closed.

List of establishments that can no longer accommodate the public until 15 April 2020 https://www.legifrance.gouv.fr/affichTexteArticle.do;jsessionid=73342A15D857ECB749307834740E329A.tplgfr34s_3?idArticle=LEGIARTI000041747892&cidTexte=LEGITEXT000041747861&dateTexte=20200403

4. School Closures

All schools and universities are closed.

Global Cooperation - International Assistance

1. International Assistance

European aid program (numerous measures to support the European countries – in progress)

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Published Date
2020-04-15