France 2030: The government intends to use the recovery plan as a weapon in the coming trade war

Conceived as a response to France’s industrial decline revealed by the crisis caused by Covid-19, France 2030 could become a tool in the trade war that is emerging amid the energy crisis. A year after Elysee presented this plan with much fanfare to the 34 billion euros he intended to implement. “Tomorrow’s Industrial Champions” To ensure the country’s strategic independence, the executive is trying to give it a more defensive tone in a very uncertain environment. and wants “acceleration”As Prime Minister Elizabeth Bourne was to announce on Friday, November 18, at the Institute of Optics of the University of Paris – Saclay, during a trip to the laboratory of the 2022 Nobel Prize in Physics Alain Aspect.

The plan in the government’s speech is now intended to respond at least in part to US protectionist measures contained in Joe Biden’s Inflation Reduction Act, which also seeks to attract foreign companies that want to lower energy bills and envisions a broad program. Investment in infrastructure, with an envelope of 370 billion dollars (357 billion euros). “The US has blown away all executives with its plan and the massive nature of the bailout could result in the loss of €10 billion in investment and 10,000 potential jobs in France.”Elizabeth Bourne explains in an interview echoes, Monday. We cannot accept this situation. » also in Asia “China, as well as Japan and South Korea, are accelerating very strongly”Emphasis on Matignon.

Adding to these challenges is a new risk, rising interest rates, which increases the cost of financing governments and dries up liquidity in markets that can invest in innovative companies or projects. “We are rapidly emerging from an era of free money and excessive liquidity”The executive authority confirms and repeats the words spoken by the head of state on August 24. A paradigm shift that could threaten the fragile ecosystem of innovative technology companies, especially in the industrial sector. “Without action, we risk losing a generation of tech companies that can’t refinance themselves”We continue.

“growth shock”

In this context, Matignon intends to mobilize the France 2030 instrument by accelerating the deployment of funds. At the end of September, 8.5 billion euros were invested, with the aim of increasing this amount to 10 billion by the end of 2022, then to 20 billion by the end of 2023, or almost two-thirds of the total investment envelope announced. by 2030, “What observers expected”According to Matignon. “Every euro of public money” spent is added “Three or even four times more” We will add private co-financing.