The significant differences in the response to the COVID crisis in policies towards companies in France and in the other euro-zone countries

When comparing the situation of companies since the start of the COVID crisis in France and in the other euro-zone countries, we see: A greater decline in corporate earnings, which is not due to a greater decline in activity, but to less government support for companies; A greater decline in corporate investment in France than in the rest of the euro zone, but not enough to offset the fall in earnings; And, as a result, companies using borrowing more extensively in France than in the other euro-zone countries. It is likely that France will have to move its corporate support model closer to that of the other euro-zone countries. This will involve greater use of subsidies and less use of credit, which is equivalent to the government's cancellation of PGEs (loans with government guarantee), where the loss for the government of its guarantee in the cancellation of loans is the same as a government subsidy to companies.