Covid-19: the State is injecting € 600 million of investment aid for the regions

Prime minister Jean Castex, has announced the release of the envelope, this Thursday, during the signing of a "method agreement" at Matignon.

Jean Castex, has announced the release of a budget of 600 million euros to destination regions in order to preserve their investment capacity after the crisis of the coronavirus, Thursday at the signing of a "method agreement" at Matignon.

"We're going to silence all our squabbles, all our differences are legitimate (...) to show that we know how to act in the same direction," argued the Prime minister prior to the initialling of this agreement with the president of the Association of regions of France, Renaud Muselier.

"We are very satisfied of what we just sign," added Renaud Muselier, making it a tribute to Jean Castex, with whom he had "in 15 days unlocked a very complex situation that we had not managed to unlock it in three years".

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The method Castex

The communities that have nurtured relationships on ac power with former Prime minister Edouard Philippe and Emmanuel Macron. At the end of may, the regions had slammed the door of a meeting with the government, believing itself to have forgotten an emergency plan of 4.5 billion euros, mainly arrow to communes and departments. And Emmanuel Macron had wanted to in June, according to the presidents of region, condition the aid of the State for a postponement of regional elections, a scenario ultimately swept away by Jean Castex in mid-July.

While Jean Castex multiplies the gestures and declarations of good intentions towards the territory since his assumption of office, the reconciliation with the regions has reinforced its strategy.

A check of 600 million euros in investment credits is, therefore, made, knowing that the areas with important employment skills, training, transportation, or economy, will have to relay valuable in the implementation of the future recovery plan is expected at the end of August.

"Is it enough ? It is never enough", smiled Renaud Muselier, which evaluates to 1.2 billion euros the impact of the crisis on the finances of the regions. But "it is a very good decision", he still welcomed.

A "fund of backup"

Other signs of abating, the confirmation of the total compensation of the tax cuts in production decided by the executive to stimulate the competitiveness of companies. This clear-cutting of 20 billion euros comes directly reach out to the regions, which saw 7 to $ 10 billion, including through the contribution on value added (CVAE).

"There was no question that it's coming to aggravate the financial difficulties of the regions, so we take our responsibilities," said Jean Castex.

The areas will therefore affect the same fraction of the VAT, including the rate of change will follow the dynamism at the national level. In exchange, the regions will undertake to invest heavily in stimulus, up to 20 billion euros. This will be done in the framework of the contracts of State-Region plan 2021-2027, which will be discussed between September and December, and that the focus will revolve around the ecological transition, research, social cohesion, health, professional training or the upgrading of transport infrastructure.

It is also asked the regions to feed a "fund safeguarding" can be mobilised in the event of a new crisis and to improve the mechanisms of equalisation between regions.

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Finally, the regions and the State have agreed to collaborate closely in the implementation of the recovery plan, in particular in the automotive and aerospace and in the mobilization of european funds.