As the government recently announced the highlights of its 100 billion euro recovery plan for France, seven opportunities have been identified for the companies:
- Companies will be given new opportunities to refloat their equity capital through an easier access to convertible bonds and equity loans. 3 billion of the recovery plan will be devoted to this purpose in order to guarantee the financing of these key instruments for maintaining investment capacity. The companies benefiting from these instruments are more likely to be family-owned SMEs, which do not necessarily have access to investors, unlike large companies, ETIs or even large SMEs accessing it via the financial markets or private equity. In addition, public investment funds will help local authorities to support local businesses directly. Beyond these instruments, all financing operations will be strategic, regardless of the size of the company, given the current turmoil, and must be carefully managed..
- Decrease in both manufacturing taxes and corporate income tax. This is an opportunity for all companies to review their tax strategy and expand their capacity investments. This new and welcomed tax environment should also encourage them to relocate and develop some of their activities in France, particularly high value-added activities (in healthcare, for example). Lastly, this tax cut is likely to strengthen the attractiveness of French companies to investors.
- New procedures for recourse to long-term partial activity. As workplaces are being completely turned upside down (mediation between activity and partial unemployment, promotion of home-working, explosion of sanitary measures to be put in place…), team operations have become considerably complicated. This may also be an opportunity to invent, in compliance with labor law, new ways of organizing the company in order to anticipate future transformations, notably through the implementation of collective performance agreements and the strengthening of social dialogue.
- Relocation of certain industrial activities back to France. Such relocation may help the acceleration of transformations, most notably in terms of digitization, provided that we focus on and invest in first-rate, innovative international projects, such as those related to the data or service economy, for example.
- Reorienting the growth towards energy transition. Beyond the large-scale industrial operations that this reorientation will inevitably engender, this is the time for companies to question their consumption and why not explore new solutions such as purchasing green energy directly from a producer, via corporate PPAs (Power Purchase Agreements). This mode of consumption is developing rapidly in the United States because it is an effective way to reduce costs and the carbon footprint of companies.
- A policy of largescale projects. The goal is to optimize town and country planning (roads, bridges, etc.), to develop the capacity of public services for the benefit of users (hospitals, high schools, colleges, etc.), and to strengthen the competitiveness of our transportation systems (rail infrastructure, etc.) in the service of environmental objectives. This will represent a considerable increase in public procurement and an optimization of award procedures. Several tens of billions of euros will be awarded to public contract holders over the next two years.
- Providing support to the cultural and film industries. The recovery plan envisages the allocation of 2 billion euros to the sector, notably through a dedicated budget for so-called future-oriented investments to breathe new life into the creative industries and help maintain France’s cultural sovereignty, particularly when faced with new digital players.
You want to seize one of these opportunities? Let’s talk about it, we can help you!