After the emergency plan, the executive will have to switch to more targeted measures on sectors and companies in danger. And find measures favorable to growth that do not (too) widen the deficit.
The economists regularly consulted by Bruno Le Maire, the Minister of the Economy and Finance, are categorical: if measures favorable to demand will undoubtedly be necessary in the future, to counter precautionary savings behavior, the priority remains and will remain in support of the productive apparatus.
The supply shock is indeed set to continue, or even worsen. After a forced shutdown of activity, more pronounced in France than elsewhere, the restart will only be very gradual. Above all, productivity will be affected by the health measures necessary for this recovery. Whether on construction sites, in automobile factories or businesses about to reopen, barrier actions will increase costs and slow down production. Moreover, despite the generous compensation for partial activity, deferral of charges and easier access to credit, the accumulated losses will weaken businesses. And handicap them when restarting.