Coronavirus: the French State releases 600 million euros for the regions
Prime Minister Jean Castex introduced this plan. The aim is to protect the investment capacities of the regions after the sanitary crisis.
“We will tone down all our quarrels, all our legitimate differences (…) to show that we know how to act in the same direction”. Jean Castex announced on Thursday, July 30, the disbursement of a 600 million euro fund for the regions, to preserve their investment capacity in the coronavirus aftermath. This step was taken in a “procedural agreement” described by the regions as a “partnership revolution”.
“We are very satisfied with what we have just signed,” Renaud Muselier said. The president of the Association of French Regions paid a heartfelt tribute to Jean Castex, with whom he has “in 15 days unblocked a very complex situation that we had not unblocked in three years”.
“Is that enough? It’s never enough,” added Renaud Muselier, who believes that the impact of the crisis on the regions’ finances is around €1.2 billion. But “it is an excellent decision,” he continued.
The regions, driving forces to boost the recovery plan
As a counterpart to this agreement, the regions will commit to massive investments in the recovery, up to €20 billion. This will be carried out within the framework of the 2021-2027 State-Region Plan contracts which will be discussed between September and December. They will focus on ecological transition, research, social cohesion, health, vocational training and the modernisation of transport infrastructures.
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The regions are also asked to feed a “safeguard fund” that can be activated in the event of a new crisis and to improve inter-regional balancing mechanisms. Finally, the regions and the State have agreed to work closely together in implementing the recovery plan, especially in the automotive and aeronautics sectors and in mobilising European funds.