In his second note released Friday May 15 to help rebound facing the coronavirus Éric Chaney, economic advisor at the Montaigne Institute, warns of the need to support business investment. The French economy could see its investments fall by more than 40% in 2020. By the end of 2022, the investment deficit could rise to 360 billion euros, or 11% of productive capital. Gold “Less investment means less productive capacity, therefore less creation of long-term value and therefore less income likely to be distributed to households”, he emphasizes.
An exception
To remedy this, he recommends subsidizing up to 10% the investment in France of all companies for a limited period. “For example, 18 months from July 1, 2020, regardless of the type of investment. “
Subsidizing all investment spending by all businesses during the recovery would help erase the cost of uncertainty. Provided that it affects all businesses and all forms of investment, material and intangible, in machinery and equipment such as construction, it would have maximum effectiveness in helping the recovery, by restoring and rejuvenating productive capital.
The only exception: companies that already benefit from subsidies for structural policy objectives and do not face the same uncertainties as the others. This is the case, for example, for solar or wind power generation chains which are guaranteed that their production will be purchased above a certain price, whatever the circumstances. They should therefore be excluded from the support program.
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