France receives its first check from the European Union

The billions of Europe have arrived in Paris. According to Bercy, France has touched Thursday August 19 a first check for 5.1 billion euros in aid from the European Union to finance its post-Covid recovery plan. The realization of an unprecedented rescue plan: usually, when states want to borrow, they each do it on their own, at higher or lower rates. This time the EU borrowed for everyone, at a much lower rate. This first installment will be followed by many others, until 2026.

“You have several tranches that are going to be distributed, which ultimately makes it possible to have fairly regular injections of support to the economy over the next few years”, explains Christopher Dembik, director of Saxo Bank. Europe’s 550 billion will be distributed as needed: 192 for Italy, nearly 70 for Spain, 40 for France and 23 for Germany. Paris has promised to invest in the ecological transition, with the energy renovation of public and private buildings. Emphasis is also placed on industry, and the digitization of certain activities. To finance the loan, several avenues are being studied, such as the creation of a European carbon tax.