The key issue for stimulus packages is to improve companies' solidity

There are often questions about the optimal nature of stimulus packages in the aftermath of the COVID crisis. We believe that (we look at the cases of the euro zone and France): There is no point in stimulating consumption (via transfer payments to households or VAT cuts), since households have accumulated very considerable forced savings during the lockdown ; It is crucial to improve companies' financial solidity, first to limit the rise in unemployment (a sharp expected rise in unemployment would lead to precautionary savings and weak consumption), and second to avoid a significant fall in investment, which would drive down potential growth. There are several ways to improve companies' financial solidity: increased capital, corporate tax cuts, etc.