France promises 1 billion euros for curfew-hit companies

French Economy and Finance Minister Bruno Le Maire speaks during a press conference to present the details of new restrictions aimed at curbing the spread of the coronavirus disease (COVID-19), announced the day before by the president, in Paris, France, October 15, 2020. Ludovic Marin/Pool via REUTERS

PARIS (Reuters) – Finance Minister Bruno Le Maire promised 1 billion euros ($1.17 billion) of additional support to help French companies cushion the impact of a nightly curfew in Paris and eight other big cities where the coronavirus is running rampant.

Le Maire also said that companies in the beleaguered hospitality industry would be exempt from social charges if their revenues crashed by more than 50% as a result of the curfews.

The curfews are President Emmanuel Macron’s response to a dilemma facing countries across Europe: how to keep the economy running and protect jobs while slowing the spread of infections and taking pressure off the creaking healthcare systems.

“The new measures will cost about 1 billion euros over the duration of the curfew,” Le Maire told a news conference.

Le Maire also said he was asking banks to delay interest payments on state-guaranteed loans to struggling companies in the hotel, restaurant and events industries.

The French banking lobby, FBF, said in emailed comment to Reuters that “banks share the idea that flexibility should be the rule”.

French banks have given out more than 120 billion euros in state-backed loans so far this year. FBF added that a permanent dialogue between companies and their bankers was essential in order to find the best solution for reimbursement of the loans.

“Banks are confident in their ability to act, as they did during the deployment of PGE (state-backed loans), in a perfect coordination with public authorities and businesses,” FBF said.

Prime Minister Jean Castex said people could break the curfew to travel to and from work, catch a train or plane, seek medical attention and even walk a dog – but an interior ministry exemption document would be needed in case of a police check.

France’s interior minister said 12,000 police would enforce the curfews in Paris, Toulouse, Marseille, Montpellier, Grenoble, Rouen, Lille, Lyon and Saint-Etienne. In all, the curfew order covers about 20 million people, almost a third of France’s population.

Anyone breaking the curfew will be fined 135 euros

(Reporting by Geert de Clercq; Writing by Benoit Van Overstraeten; Editing by John Stonestreet and Tomasz Janowski and Kirsten Donovan)

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