Recent developments: France presented its final Recovery and Resilience Plan (RRP) for EU funding on April 27. The analysis published here refers to the domestic recovery package (France Relance) published last autumn. We will update our analysis as soon as possible in order to provide a dedicated assessment of the RRP. An initial assessment indicates that most measures included in the RRP were already included in France Relance, and that hence the overall numbers are unlikely to change significantly.
The French government presented ‘France Relance’, a large €93.4bn recovery package drawing on funding from both the domestic and EU budget, in September 2020. French recovery measures currently add up to €93.4 bn or 4.1% of domestic GDP. Overall, the French programme makes a moderate contribution to the transition towards a climate neutral economy.
We find that the measures in the domestic French recovery package overall achieve a green spending share of 23%. We will add an analysis on the green spending share of the national Recovery Plan in the context of the EU Recovery Facility once itis publicly available. In contrast, 22% (€20.5bn) of all measures have a negative impact.Furthermore, we find that 32% (€29.9bn) may have a positive or negative impact on the green transition depending on the implementation of the relevant measures, illustrating the importance of further scrutiny during the further planning, review and implementation of the recovery measures.
Our calculation of the green spending share aims to mirror the approach used for the official assessment of national recovery plans (find more information here).
The recovery effort of the government covers three areas: Ecology, Competition and Cohesion. Especially the measures under the ecologic thread can be mostly indicated as ‘green’. The overall vision of the recovery package can be described as future-oriented and aiming for an ecologic transition. But the measures themselves are not linked to legally binding acts. There are neither specific targets nor conditionalities given (e.g. reduction of CO2-emissions in tons) and it is not evident how and on the basis of which criteria the funds are allocated.
France is reinforcing training for the “strategic professions of tomorrow”, in line with strategic sectors (Digitalisation, Ecological transition, Industrial sectors concerned by the issue of economic sovereignty and the relocation of productions) and in line with the priorities of the recovery plan. The training activities in the three sectors considered strategic are funded by €25 M.
Lower production taxes (€20bn for two years) which will continue after Covid-19 (i.e. as a 10Bn€/year cut). This measure did not initially include climate conditionalities, but the issue was debated in the parliament following publication of the plan.
About 25% of the recovery budget of France Relance was already announced before Covid-19. Having said that, the program “France Relance” as a reaction to the pandemic crisis is not as ambitious as announced by the French Prime minister.