COVID-19: Measures to Support the French Economy

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The various thematic memos included below summarize the exceptional package enacted by the French State since the beginning of the lockdown (confinement) and aimed at supporting companies particularly affected by the economic and social consequences of the COVID-19 crisis.

These measures are intended, in particular, to preserve the cash flows of companies whose business is adversely impacted during the lockdown.

These thematic memos will be regularly updated by Goodwin's teams based on legislation published in the French Official Gazette (Journal Officiel) as well as announcements made by the Government and the relevant governmental bodies.

The thematic memos cover the following areas:

1. LABOR LAW

  • Setting-up of the partial activity scheme – Read the Memo [Updated on April 29, 2020]
  • Paid vacation leaves, rest days and profit-sharing – Read the Memo [Updated on May 12, 2020]
  • Employee representation bodiesRead the Memo [Updated on May 4, 2020]
  • The purchasing power bonus (prime pouvoir d’achat) – Read the Memo

2. TAXES AND SOCIAL CONTRIBUTIONS

  • Tax measures for the benefit of companies
  • Specific measures regarding time limits applicable for tax audits purposes
  • Social measures for the benefit of companies
  • Measures applicable to distressed companies

    Read the Memo [Updated on May 29, 2020]

3. CORPORATE LAW

  • Convening and holding of stockholders’ meetings and other board meetings
  • Delays for approving the FY 2019 annual accounts

    Read the Memo [Updated on April 14, 2020]
  • Distribution of dividends (or shares buy-back) in 2020 for companies benefiting from French State-aid in the form of French-state guaranteed loans or deferral of tax and social security obligations payment – Read the Memo

4. FOREIGN DIRECT INVESTMENT

Communication « Foreign Direct Investment » : The European Commission requests Member States to fully implement their national regulations regarding the control of foreign direct investment (or, if not, to introduce the appropriate regulations) in the healthcare field.* In addition, the European Commission could also enforce its own powers under competition law to ensure a fair access to health facilities needed in the context of the pandemic and marketed/commercialized in the European Union by companies registered in third countries.

*(European Commission, Communication dated March 25th, 2020 (reference: C(2020) 1981 final))

Read the European *Commission* Communication

5. BPIFRANCE AND THE STATE GUARANTEE

  • The French State Guaranteed Loan (PGE) / The Fonds de développement économique et social / Repaid Advances, together with the “FAQ - State-guaranteed loan" (updated French version only) – Read the Memo [Updated on July 3rd, 2020]
  • Notion of distressed company under European Union law – Read the Memo
  • Exceptional measures implemented by Bpifrance. Read the Memo
  • Public support measures for domestic and export credit insurance – Read the Memo
  • European Financial Support Measures for Companies – Read the Memo

6. SETTING UP OF A SOLIDARITY FUND

Read the Memo [Updated on July 1st, 2020]

7. PAYMENTS OF SUPPLIERS OF ELECTRICITY, GAS AND WATER AND PAYMENTS OF LANDLORDS

Read the Memo [Updated on April 27, 2020]

8. EMERGENCY SUPPORT PLAN DEDICATED TO SUPPORT START-UPS

Read the Memo

9. LEGAL AND CONTRACTUAL DEADLINES/TIME LIMITS

  • Extension of time limits during the state of health emergency and adaptation of legal proceedings during the state of health emergency
  • Measures applicable to civil courts and to co-ownership agreements
     
    Read the Memo [Updated on May 22, 2020]

10. AMICABLE PROCEEDINGS AND INSOLVENCY PROCEEDINGS

  • Temporary adaptation of the rules for distressed companies to reflect the consequences of the public health emergencies for private companies and agricultural businesses and to avoid massive job destruction

    Read the Memo [Updated on June 4, 2020]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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