French government releases 2024 public aid estimate

The French government has published its first official estimate of public aid to businesses, evaluating it at 166 billion euros for 2024 in the broadest sense. This exercise, which the government promises to renew every year, was initiated in response to a Senate investigation commission that had criticized the lack of a "transversal legal definition of public aid to businesses."

Senate's previous estimate and definitions

The senators had previously estimated these aids at 211 billion euros for 2023 in the broad sense and 108 billion euros in the strict sense. The government's calculation is based on a definition from a consultation conducted by the High Commission for Planning, which includes all aid that mobilizes money for the benefit of a business without an equivalent counterpart. However, the financing of BPI (Bpifrance) is not counted.

Breakdown of aid categories

According to the interpretations of the various aids, two figures result. The first, nearly 60 billion euros, includes "aids for which there is absolutely no doubt," as explained by Bercy during a press briefing. The second figure, 166 billion euros, includes broader categories, mainly general reductions in employer contributions (65 billion euros).

Explanation of differences and exclusions

Bercy explains the difference with the senators' figures by referencing the years, noting that 2023 was part of "the years when there were a number of crisis aids benefiting businesses." Additionally, the government does not count the financing of Bpifrance provided under market conditions "in the form of loans, guarantees or direct investments," which the Senate had included at 41 billion euros.

Future plans for regular reporting

The government's 2027 finance bill, which begins its examination in the National Assembly chamber, provides for making the publication of the estimate of public aid to businesses mandatory every year. However, it will be based on "definitive executed data," resulting in a two-year delay, with the figures published on Tuesday relating to 2024. Bercy also promises that this inventory will serve as a basis for a regular evaluation of the aids by the High Commission for Planning.