The Grand Investment Plan (Le Grand plan d’investissement) - 2018-2022

The French government has committed to a major investment plan of 57 billion euros, to be carried out in a five-year period, to support structural reforms and meet four major challenges in France: carbon neutrality, access to employment, competitiveness through innovation and the digitization.

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WHAT IS IT?

The Grand plan d’investissement (GPI) is based on four priorities: accelerate the ecological transition (20 billion euros), build talent among people (15 billion euros), anchor competitiveness on innovation (13 billion euros) euros) and build the digital state (9 billion euros).

For these four priorities, the funding breaks down as follows:

1. ACCELERATE THE ECOLOGICAL TRANSITION

  • EUR 9 billion to improve the energy efficiency of low-income housing and public buildings. Buildings are responsible for 20% of greenhouse gas emissions;
  • EUR 4 billion to improve the daily mobility of the people, because transport accounts for one-third of greenhouse gas or fine particle emissions;
  • EUR 7 billion to finance the 70% rise in renewable energy production capacity. It is a question of accelerating the ecological transition (Sustainable and smart cities, development of new sources of energy etc.) and of financing the initiatives for behavioral change of individuals and the companies.

2. STRENGTHEN SKILLS AND EMPLOYMENT

The objectives of the GPI in this area:

  • train and support 2 million low-skilled people in order to provide a concrete response to unemployment among the least qualified (where the unemployment rate is 18%);
  • fund experiments in national education and support undergraduate transformations, to improve the initial training of young people, their orientation in high school and university and their professional integration.

3. CONSOLIDATING INNOVATION AND COMPETITIVENESS

  • 3.5 billion euros to support French scientific excellence. The priority is to consolidate the emergence of major integrated universities of world rank, boosting the whole system of higher education and research;
  • 4.6 billion euros to improve innovation in companies, at the heart of French competitiveness. The investment plan will encourage risk-taking in upcoming sectors, such as artificial intelligence, exploitation of large data, nanotechnology and cybersecurity;
  • EUR 5 billion could be invested to accelerate the adaptation of tools and the change in practices in agriculture, fisheries, agribusiness and the forest-wood sector, which are essential sectors.

4. BUILDING DIGITAL STATUS

4.4 billion euros to make the state more agile and improve the quality and accessibility of public services. The Grand plan d'investissement aims to make 100% of the public services dematerialized (except issuing identity documents) and must make it possible to sustainably reduce public spending by 2022;

4.9 billion euros to accelerate the digitization of the health system and social cohesion. These include developing health homes in territories lacking doctors, modernizing hospital equipment and supporting medical research.

LE GRAND PLAN D’INVESTISSEMENT WILL NOT INCREASE PUBLIC DEFICIT

Its financing is based on several types of levers:

  • loans, own funds or guarantee funds (11 billion euros), notably thanks to an exceptional mobilization of the Caisse des dépôts et consignations;
  • activation or reorientation of existing investments (€ 12 billion);
  • new budgetary measures (24 billion).

Finally, the GPI will finance le Programme d’investissements d’avenir (Future Investment Program 3 of € 10 billion), the priorities of which were defined but not yet funded.

WHY?

The Government is conducting structural reforms to address four major challenges: turning the corner on carbon neutrality, improving access to employment, boosting competitiveness through innovation and inventing the digital age. 

Accompanying these investment reforms is to ensure their effectiveness in giving a job-seeker the skills they need to find work, allow a modest household to isolate their home to reduce their energy consumption, or accelerate the digital transition of public hospitals. 

A large plan allows a global and legible approach while transforming the function of investor of the State: selected on rigorous criteria to reach explicit objectives of transformation, the investments will be put in place, followed and evaluated in order to know their real impact and to be able to amplify or reduce them according to their utility.

Learn more about le Grand plan d'investissement

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