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France's €100 billion stimulus package seems to be powerless in front of the pandemic

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Miguel A. Rodriguez
Miguel A. Rodriguez
06 October 2020
Paris is the "red dot" of COVID-19 infections.

Countries are still fighting the pandemic any way they can. For example, in the States, the Republicans and the Democrats are trying to reach consensus regarding a new stimulus package that could vary between $1.5 trillion and $2.2 trillion.

In Europe, the financial measures that have been taken so far seem to run out of steam, as multiple countries are facing another wave of COVID-19 infections.

So it seems to be the case of France. The Macron government launched at the beginning of September a €100 billion stimulus package. But as time went by, it proved to be insufficient given the circumstances. France is currently dealing with a new wave of infections, which is the most significant so far. If the virus continues to spread at this current rate more restrictive measures will be enforced.

After Paris ending up on "red alert," the government toughened the coronavirus-related restrictions: bars have been ordered to close, while restaurants can stay open until 10 PM on the condition that strict sanitary protocols are respected. The government is looking to avoid another national lockdown, which made the country's GDP to contract 13.8% in Q2.

At the moment of writing, France has 630,000 infections – the second most significant number after Spain.   

The French market doesn't seem to be bothered by the news, France40 trading higher by more than 0.70%. 

Sources: euronews.com, marketwatch.com, finance.yahoo.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.