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France

Details of France's support measures to help citizens and companies during the significant economic impact of the coronavirus pandemic.

Since the beginning of the pandemic, the Commission has adopted support measures under the state aid Temporary Framework and EU state aid rules. These measures aim to help citizens and companies and mitigate the significant economic impact of the coronavirus pandemic:

  • on 1 December 2021, the Commission approved an amendment to a previous aid measure in favor of Air France, extending the duration of the guarantee until May 2025. The measure aims to preserve the company's cash position in the medium term, and help with its economic activity.

  • on 29 November 2021, the Commission approved a €700 million scheme to support certain companies particularly affected by the coronavirus pandemic and the restrictive measures implemented to limit the spread of the virus. The scheme is open to companies operating in certain sectors strongly affected by closures, particularly the catering, events and accommodation sectors, travel agencies, gyms, museums and leisure parks. The assistance, in the form of direct grants, aims is to help businesses continue their economic activity during and after the pandemic.

  • on 18 October 2021, the Commission approved a €700 million scheme to support certain retailers and services affected by the pandemic and the restrictive measures put in place to limit the spread of the virus. The scheme is open to furniture, clothing, IT, sport, optics and jewellery retail outlets, and services such as household goods repairs, hairdressing and beauty care. The support, in the form of direct grants, aims to help the beneficiaries address the losses incurred in the context of the coronavirus outbreak.

  • on 23 September 2021, the Commission approved a €61.19 million scheme to compensate Brittany Ferries company for the damages incurred due to the coronavirus pandemic. The measure aims to compensate the beneficiary for the overall loss of revenue due to travel restrictions adopted in response to the pandemic.

  • on 14 September 2021, the Commission approved plans to set up a €3 billion debt, equity and hybrid instruments fund to invest in companies affected by the coronavirus pandemic. Under the scheme, the support, in the form of subordinated or participating loans and recapitalisation measures to support companies affected by the coronavirus pandemic by facilitating their access to finance.

  • on 28 July 2021, the Commission approved a €8.4 billion wage subsidy scheme aimed at supporting small and medium-sized enterprises operating in sectors particularly affected by the coronavirus pandemic and the restrictive measures that the French government had to implement to limit the spread of the virus. Under the state aid Temporary Framework, the assistance, in the form of exemptions from social contribution payments, aims to support small and medium-sized enterprises to resume their activities and avoid layoffs.

  • on 29 June 2021, the Commission approved a €60 million scheme to support small and medium-sized enterprises in the beef cattle farming sector affected by the coronavirus pandemic. Under the state aid Temporary Framework, the public support in the form of direct subsidies, aims to alleviate the cash shortages faced by the beneficiaries due to the coronavirus pandemic, and is expected to benefit 22,000 agricultural businesses.

  • on 18 May 2021, the Commission approved, under EU state aid rules, a €110 million support scheme for audio-visual media and radio services affected by the coronavirus pandemic. The measure provides for the creation of a tax credit corresponding to 15% of the costs incurred in favour of the creation and distribution of audio-visual and radio works. The measure aims to help facilitate the development of the media sector and audio-visual and radio creation, and support the media landscape and its cultural quality.

  • on 12 May 2021, the Commission approved a €100 million scheme to support the agricultural sector affected by the coronavirus pandemic. Under the state aid Temporary Framework, the support, in the form of a tax credit, is open to agricultural businesses stopping the use of glyphosate herbicide in 2021. The scheme aims to help mitigate some of the economic consequences related to this agricultural practice, amplified by the difficulties caused by the coronavirus pandemic.

  • on 6 April 2021, plans to grant up to €4 billion for the recapitalisation of the Air France company. Under the state aid Temporary Framework, the measure aims to reinforce Air France’s equity and alleviate the financial difficulties resulting from the coronavirus outbreak. It comprises the conversion of a €3 billion state loan already granted by France and approved in May 2020, and a capital injection by the French government. The decision wasamended on 27 July 2021 to include additional support elements.

  • on 22 March 2021, under EU state aid rules, aFrench scheme with a budget between €140 and €700 million, to compensate ski lifts operators for the damages suffered due to the restrictive measures introduced to limit the spread of the coronavirus. The aid, in the form of direct grants earmarked to cover up to 49% of the estimated turnover loss, aims to compensate the ski lift companies operating in winter sport resorts.

  • on 19 March 2021, a €25 million French aid scheme to support the horticulture sector affected by the coronavirus pandemic. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to help compensate for part of the beneficiaries’ turnover loss. The scheme is expected to benefit around 3,000 horticultural producers.

  • on 13 March 2021, a French scheme of approximately €2 billion to support the uncovered fixed costs of companies affected by the coronavirus outbreak. Under the state aid Temporary Framework, the scheme is open to companies of all sizes activating in all sectors, except the financial sector. The public support, in the form of direct grants, aims to mitigate the economic difficulties and the liquidity shortages that the beneficiaries are facing due to the restrictive measures that the French government imposed in an effort to limit the spread of the coronavirus.

  • on 4 March 2021, under EU state aid rules, a French state guarantee scheme to support the economy in the context of the coronavirus outbreak. The support, in the form of a state guarantee on private investment vehicles, aims to provide long-term funding to companies and thereby facilitate new investments supporting recovery from the current economic crisis. The scheme is accessible to small and medium-sized enterprises and is expected to mobilise up to €20 billion of private long-term funding.

  • on 26 January 2021, a €200 million French aid scheme to support businesses serving the public that have been affected by the coronavirus pandemic. Under the state aid Temporary Framework, the public support, in the form of a wage subsidy, aims to reimburse the wage costs corresponding to paid vacation days for employees. The scheme is open to companies in the hospitality, tourism, catering and events sectors, and aims to alleviate costs and avoid layoffs.

  • on 26 January 2021, under EU state aid rules, a €120 million French aid scheme to partially compensate sports clubs and organisers of sports events for the loss incurred following administrative measures adopted by the French authorities to limit the spread of the coronavirus. On 23 August 2021, the Commission approved a modification to the scheme, which increased the allocated budget by €140 million and extended the coverage period. Under the scheme, direct subsidies aim to support sports associations and other sports companies, federations, professional leagues and event organizers whose events or competitions were subject to limitations or total ban on hosting the public.

  • on 16 December, the Commission found that a €4.1 billion amendment to a French wage subsidy scheme to support businesses affected by the coronavirus pandemic was in line with the Temporary Framework. The scheme was approved by the Commission in June 2020 and amended in October 2020 (SA.58978). France requested the amendment to support employers in regions particularly hit by the coronavirus pandemic. The scheme, as amended, is open to employers in all company sizes and any sector or economic activity. The scheme aims to alleviate the costs borne by employers, alleviate liquidity shortages, avoid layoffs and ensure the continuity of economic activity during and after the pandemic.

  • on 14 December, under EU state aid rules, two French measures in favour of Corsair airline, active in passenger and cargo transport mainly to French overseas territories. The first measure, consisting of €106.7 million of restructuring aid, aims to allow Corsair to partially finance its restructuring plans meant to make the company viable again and avoid disruptions for passengers. The second measure, worth €30.2 million, aims to compensate the company for damage suffered due to emergency measures put in place by governments in the context of the coronavirus outbreak.

  • a second amendment to a French scheme aimed at supporting the economy during the coronavirus outbreak. The scheme was originally approved on 21 March 2020.  The first amendment was adopted on 4 June 2020.  This second amendment adds to the original scheme, a guarantee on short-term financing provided by factoring companies to their customers upon receipt of a purchasing order.  In this way suppliers can maintain liquidity should payments be delayed.  The estimated budget for the new measure is €20 billion.

  • on 30 June 2020, a €30 billion French subordinated loan scheme to support companies affected by the coronavirus outbreak. The total amount of subordinated loans with favourable interest rates that can be granted under the scheme is €30 billion. The measure aims at supporting access to funding for enterprises of all sizes to sustain their economic activities. The measure will be open to companies active in all sectors, with the exception of those active in the financial sector. The scheme will be managed by the central government, by territorial administrations and by other granting authorities. The subsidised subordinated loans will be granted directly by the granting authorities.

  • on 30 June 2020, a French scheme of € 207 million to support the French economy during the coronavirus outbreak. This support will take the form of salary support in sectors particularly affected by the pandemic, including hospitality, tourism and transport, whose activity has been interrupted by measures put in place by the State to stop the spread of the virus. The measure aims to ensure that workers in these sectors will keep their jobs, and receive a monthly income, while reducing the salary costs for employers.

  • on 5 June 2020, a €5 billion French “ umbrella” scheme to support research and development, testing and upscaling infrastructures and production of coronavirus relevant products. The “umbrella” scheme (“régime cadre temporaire”) will support: (i) coronavirus relevant research and development (“R&D”) projects; (ii) construction and upgrade of testing facilities; and (iii) investments in production of coronavirus relevant products and technologies. The aim of the scheme is to stimulate R&D in medicinal products such as vaccines, medicaments, hospital and medical equipment (including ventilators), and protective clothing and equipment. The measure will also enhance the rapid construction of production facilities for these products, as well as the provision of necessary raw materials and ingredients. The scheme has a total estimated budget of €5 billion, possibly co-funded by EU structural funds. The public support will take the form of direct grants, repayable advances and tax advantages. Undertakings are encouraged to cooperate with each other or with research organisations by benefitting from a 15% bonus when the R&D research project is carried out in cross-border collaboration with research organisations or other undertakings, or when the research project is supported by more than one Member State. The measure allows aid to be granted by French authorities at all levels, including the government, regional and local authorities. The scheme is open to all enterprises capable to carry out such activities in all sectors.

  • on 25 May 2020, an aid measure in the form of an individual guarantee from the French State for a loan of EUR 71 million in favour of the NOVARES group in order to mitigate the impact on the company of the coronavirus outbreak. The Commission examined the measure under the State Aid Temporary Framework. The NOVARES group provides plastic components for motors and motor vehicles. It is located in 23 countries all over the world. As a result of the containment measures adopted by its host countries in order to contain the spread of the coronavirus, NOVARES had to close down its plants one after another and now only five sites are in partial operation out of a total of 45. This almost total discontinuation of production led to a drastic drop in turnover and a significant need for liquidity. The measure notified by France will take the form of a State guarantee covering 90 % of a loan of EUR 71 million, to be granted to NOVARES by a pool of commercial banks. The loan will provide NOVARES with the necessary liquidity to survive this difficult period until the expected resumption of sales with the progressive lifting of restrictions. The loan is complementary to other market financing for equivalent amounts that are intended to support the continued operation of the business.

  • on 11 May 2020, under EU State aid rules, a French guarantee scheme for small and midsize companies with export activities that are affected by the coronavirus outbreak. The support, in the form of State guarantees, will be accessible to all French exporting companies with an annual turnover below €1.5 billion. The measure is expected to mobilise €200 million. The scheme aims at limiting the risk associated with issuing financing guarantees to those exporting companies that are most severely affected by the economic impact of the coronavirus outbreak, thus ensuring the continuation of their activities. The Commission assessed the measure under EU State aid rules, and in particular Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance in their economy.

  • on 4 May 2020, under EU State aid rules, a €7 billion French aid measure consisting of a State guarantee on loans and a shareholder loan to Air France to provide urgent liquidity to the company in the context of the coronavirus outbreak. The measures were approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020, and directly based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), respectively. Air France Air France is a major network airline operating in France. Since the start of the coronavirus outbreak, Air France has also played an essential role in the repatriation of citizens and for the transport of medical equipment. The measure, which has a total budget of €7 billion, will take the form of: (i) a State guarantee on loans, and (ii) a subordinated shareholder loan to the company by the French State. Air France requires the state-backed guarantee and the shareholder loan to obtain vital liquidity to face this difficult period, before an expected recovery in sales once the restrictions are lifted progressively. France has also demonstrated that all other potential means to obtain liquidity on the markets have already been explored and exhausted. The Commission found that the French measure is in line with the principles set out the in the EU Treaty as it is well targeted to remedy a serious disturbance to the French economy. The Commission found that, in the absence of the public support, Air France would likely face the risk of bankruptcy due to the sudden erosion of its business. This would likely cause severe harm to the French economy.

  • a French aid measure consisting of a €5 billion loan guarantee to the Renault group to mitigate the economic impact of the coronavirus outbreak. The measure was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020. France submitted an individual notification because the guarantee provides greater loan coverage (90%) than under the French general guarantee scheme approved by the Commission on 21 March 2020 (70% loan coverage). The Commission's assessment concluded that the measure in favour of Renault is nonetheless in line with the conditions under the Temporary Framework. Renault has been obliged to close almost all of its production lines and cease most sales activity due to the emergency measures put in place by France to limit the spread of the coronavirus. Despite significant proposed cost saving measures and 90% of its staff being placed in part-time unemployment, the current crisis will still lead to significant deterioration in the group's working capital and cash flow. Renault requires the state-backed guarantee to ensure access to vital liquidity from financial institutions to face this difficult period, before an expected recovery in sales once the restrictions are fully lifted.

  • on 24 April 2020, a French guarantee scheme for small and midsize companies with export activities that are affected by coronavirus outbreak. The support, in the form of State guarantees on loans, will be accessible to all French exporting companies with an annual turnover below €1.5 billion. The scheme is expected to mobilise €150 million. The scheme aims at limiting the risk associated with issuing loans to those exporting companies that are most severely affected by the economic impact of the coronavirus outbreak, thus ensuring the continuation of their activities.

  • on 20 April 2020, a French “umbrella” scheme to support small and medium-sized enterprises (SMEs) and large corporates in France affected by the coronavirus outbreak. The scheme, called “Regime Cadre Temporaire”, covers: a) limited amounts of aid in the form of direct grants, equity injections, repayable advances and subsidised loans, up to a maximum nominal amount of €100,000 for a company active in the primary agricultural sector, €120,000 in the fishery and aquaculture sector, and €800,000 in all other sectors; b) State guarantees for loans, subject to safeguards for banks to channel State aid to the real economy; and/or c) Public loans to companies with favourable interest rates.

  • on 12 April 2020, under EU State aid rules, a €10 billion French guarantee scheme to support the domestic credit insurance market in the context of the coronavirus outbreak. Given the economic impact of the coronavirus outbreak, the risk of insurers not being willing to issue this insurance has become higher. The French scheme ensures that trade credit insurance continues to be available to all companies, avoiding the need for buyers of goods or services to pay in advance, therefore reducing their immediate liquidity needs.

  • on 21 March 2020, under Article 107(3)(b), three French State aid schemes (SA.56685). Two schemes enabling the French public investment bank, Bpifrance, to provide State guarantees on commercial loans, and credit lines, respectively, for enterprises with up to 5000 employees. One scheme to provide State guarantees to banks on portfolios of new loans for all types of company - this is direct aid to the companies that will enable banks to quickly provide liquidity to any company that needs it.

  • on 31 March 2020, under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), a French scheme deferring the payment by airlines of certain aeronautical taxes. The scheme aims at compensating airlines for part of the damage suffered due to the coronavirus outbreak, by temporarily reducing the pressure on their cash flows. The scheme will be accessible to airlines with an operating licence in France, and will offer them the possibility to defer the payment of certain taxes that would in principle be due between March and December 2020 to after 1 January 2021, and to pay the taxes over a period of up to 24 months. The aim of the scheme is to reduce the pressure on airlines' cash flows.

  • prolongation and modification of a previously approved scheme to support small and micro-enterprises as well as self-employed people affected by the economic repercussions of the coronavirus outbreak to be in line with EU State aid rules. The existing scheme, called “Fonds de solidarité” had initially been approved on 30 March 2020 under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020. Support takes the form of direct grants to allow beneficiaries to face their operating costs in the difficult situation caused by the coronavirus pandemic. The beneficiaries are companies with a maximum of 10 employees and having a yearly turnover not exceeding €1 million. Companies are eligible when their business was closed by administrative decision as a result of the coronavirus outbreak, or when their monthly turnover in March and /or April 2020 dropped by 50% compared to their turnover in the same period last year.