A succession of urgent economic policy measures

We look at the case of France, but this analysis could appl y to all European Union or OECD countries. We believe there is a chronological sequence of urgent economic policy measures : The rise in unemployment and bankruptcies caused by the lockdown must be limited as much as possible. This has been done, with short-time working schemes, government loan guarantees, tax deferral s and cancellation s , and aid for the hardest -hit sectors; This summer, a large incentive to hire youth will have to be introduced, without which the problems facing companies will result in young labour market entrants failing to find work; After the summer, companies in the sectors the hardest hit by the crisis and by the new health standards resulting from COV I D will need to be helped: sector aid, compensation for higher costs due to the health standards, extension of short-time working schemes; Before the year’s end, the additional corporate debt will have to be converted into equity (or quasi-equity) to prevent a debt overhang from weakening investment and employment.