French prime minister Jean Castex says country’s recovery plan, worth 100 billion euro (about $118 billion USD), is the “biggest stimulus package of all European countries.”
Speaking after a cabinet meeting, he said the value is the equivalent of 4% of France’s GDP and four times larger than the stimulus package put in place after the 2008 financial crisis.
The plan — which was announced today and is called “Restart France” — includes 70 measures centered around three major themes: ecological transition (30 billion euros), business competitiveness (35 billion euros) and social and territorial cohesion (35 billion euros).
The plan has a clear emphasis on a green transition of the economy with 11 billion euros for the transport sector including 4.7 billion for improvements of the rail network and 6 billion earmarked for energy-efficient building renovations including 2 billion for peoples’ homes. The hydrogen industry — seen as a key in the transition away from fossil fuels – is set to get two billion euro as part of the two-year stimulus plan.
Castex said the stimulus package would generate 160,000 new jobs by the end of next year.
The prime minister said no extra household or corporate tax would be levied to pay for this plan but that 40% or 40 billion euros would come from the 750 billion euro EU recovery fund.