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Classics The social model, a shield that cushioned the economic crisis

15:30  11 january  2021
15:30  11 january  2021 Source:   lejdd.fr

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Combinés aux mesures de soutien aux entreprises et aux ménages, les amortisseurs sociaux ont permis de maintenir le pouvoir d'achat et d'éviter les faillites. © Mathieu Ménard / HansLucas / AFP

Combined with support measures for businesses and households, social shock absorbers have made it possible to maintain purchasing power and avoid bankruptcies.

France, an economical donkey hat? Not really. Like its neighbors, our country has opened the floodgates in an unprecedented way: 185 billion euros for the sectors in greatest difficulty and to revive activity, or 7.6% of GDP. The French envelope appears smaller than that of the Germans (8.4% of GDP), the Spaniards (11.1%) and the British (9.1%), as a recent report by the National Productivity Council ( CNP). But in reality, the government preferred to devote funds to the end of the crisis. With its 100 billion euros, the French recovery plan is far ahead of those announced across the Rhine and across the Channel.

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With the exception of government guaranteed loans, the emergency measures package looks paler. "The solidarity fund is less endowed than in other countries, especially for very small businesses and self-employed workers," comments Vincent Aussilloux, general rapporteur of the CNP. When, in the spring, France distributes 1,500 euros to them, Germany releases 9,000, without counting aid from the Länder.

Poorly coordinated economic and health strategies

Aware of the risk of dropping out, particularly in restaurants, sports and tourism, Bruno Le Maire is ready to boost the bankruptcy shield by raising the ceiling of the solidarity fund to 3 million euros. "Beyond salaries, we must take care of part of the fixed costs and in particular the rents, which can put certain companies in difficulty", advises Nicolas Bouzou, economist and founder of the Asterès cabinet.

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Another stone in the French shoe: support for the most disadvantaged while 1 million people have fallen into poverty. "Those who have suffered a loss of income must be more assisted, until the end of the state of health emergency," adds Nicolas Bouzou.

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The best economic stimulus tool is the vaccine

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If the "emergency" component appears more scarce than elsewhere, it is because our social model is also there to ward off hard knocks. “Our system is already very generous,” explains Vincent Aussilloux. “Unemployment insurance is vast in France, cultural professionals benefit from the intermittent regime. This is not the case in the United Kingdom and in Germany. Our social safety nets have cushioned the blow. "

The checkbook strategy

Of course, they are expensive: 32% of GDP. But when the economy was sealed off, France needed less to pull out the checkbook. A strategy that has rather worked, the number of bankruptcies having even decreased over a year. "Thanks to the measures taken, the purchasing power of households has deteriorated much less than activity, notes economist Stéphanie Villers. It fell only 0.3% this year when GDP plunged by 9 %. "

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Given the world’s extensive economic and social interrelationships and trade— we are only as strong as the The second step is to do everything possible to cushion the knock-on effects on millions of The most vulnerable in the face of this crisis are those who are already at risk: those caught up in or

While the economy is shut down, policymakers will need to ensure that people are able to meet their needs and that businesses can pick up once the acute phases of the pandemic pass. The large, timely, and targeted, fiscal, monetary, and financial policies already taken by many policymakers—including

The better-off have saved: 130 billion are sleeping in bank accounts. To which are added the 3,000 billion invested in life insurance and other financial products. "If the vaccination campaign is carried out correctly, these sums will have to be reinjected into the economy," predicts Stéphanie Villers.

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Key to our daily life, serum is also key to the resumption of our growth. "The best tool for economic recovery is the vaccine, summarizes Nicolas Bouzou. But there is no coordination between economic and health strategies." What to delay the return to a normal activity. "The countries which have been able to adapt their vaccine logistics as quickly as possible to the economic emergency will do the best", concludes Stéphanie Villers. Not won ...

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This is interesting!