As interest rates are low it has interest to do so

"The deficit will increase, it is certain, but the amount of the recovery plan and what it costs to the budget, this is not the same thing." Eric Woerth admitted yesterday, on Europe 1, that the "very powerful" plan of recovery of the economy will announce Thursday Nicolas Sarkozy will lead once again the Government to degrade its forecast deficit for 2009 (3.1 of GDP). The European Commission requested States to dedicate 1.2 points of GDP to the relaunch of the activity, or approximately 23 billion euros for the France. But the Minister of the Budget also is teaching this stimulus, putting forward many measures which will have no direct impact on public finances, or for which the cost will be stationed in 2009, or 2010. It is acceleration times of payment and refund of that State to companies ("Les Echos" from 27 November), confirmed yesterday by Eric Woerth: "the State must for example refunds of VAT and corporate tax, it can go faster, it is very important cash for business," and, medium-term, "does not cost the State". Similarly, companies will be relieved measures even, to à relieved

The more modest help

The Budget Minister insisted also on the acceleration of public investment already programmed, especially in the context of the Grenelle of the environment: "there still can go faster, it passes through loans that may also be carried out by the SNCF, RATP or local communities." As interest rates are low, it has interest to do so. "Thermal retrofit of social housing, Eric Woerth made reference to the"10 billion euros of cash from the housing agencies", stressing the need to operate a"best equalization"between them. Other spending, they will have to be "reversible" once the crisis passed. Would including the case of tax assistance for the purchase of a new vehicle (bonus enhanced, premium relieved case-sensitive) "for a commercial course", or the improvement of the loan zero amount (ceiling) for the purchase of housing. Ad hoc assistance for the more modest, claimed by Martin Hirsch, pending the implementation of the RSA on July 1, it has the endorsement of Nicolas Sarkozy ("Les Echos" of 26 November) but is the subject of debates within the Government (amount, perimeter). Eric Woerth said yesterday that avoid "put money in the boiler", without sustainable effect on the economy, in reference to the cheque paid to the more modest in the United States in the first half.

It remains finally to agree on what will be posted in the plan. Does include the measures announced in advance The Germany said that with 32 billion euros put on the table in recent weeks (fiscal aid for the purchase of cars, provision of credit for SMEs, etc.), it already meet requests for Brussels. The France should also record of measures already announced, as the exemption from business tax on investments (EUR 1 billion) and the revival of assisted contracts (250 million). "All that will have an impact on 2009 will be counted", indicates in Bercy, even if, of course, the measures of the bailout of banks (funds own, refinancing), and the 22 billion earmarked credits to SMEs will not be included. "It will not add cabbage and carrots," said a government source. But what about the strategic investment Fund (ISP), which will have 6 billion euros of liquidity, including 3 billion borrowed by the State The logic would like that they are not counted, because if these funds are mobilized to deal with the crisis, they are not strictly speaking a temporary activity and immediate effect support, but rather a long-term orientation.