Given its already low level, potential growth must be prevented from falling further

We look at the situations of the euro zone and France. Before the COVID crisis, potential growth (productivity gains) were already low. Especially against the backdrop of population ageing, potential growth (productivity gains) must therefore be prevented from falling further. This will require preventing: Bankruptcies (which destroy productive capital) and unemployment (which destroys human capital and can lead to a permanently lower employment rate); A deterioration in the financial situation of companies (which can lead to lower investment and to the proliferation of zombie firms). To make these two objectives compatible, it would be preferable to temporarily subsidise struggling companies rather than help them run up more debt.