COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of France Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for France
Date: 2021-06-23
Institutions: European Commission, Secretariat-General
Subjects: EU aid, France, coronavirus disease, economic and social cohesion, economic recovery, economic reform, epidemic, investment, structural adjustment

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.6.2021  SWD(2021) 173 final  COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of France Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for France {COM(2021) 351 final}  
 
 
Table of contents 
1. 

Executive summary ............................................................................................................................... 2 

2.  Recovery and resilience challenges: scene-setter ................................................................................ 6 

2.1.  Macroeconomic outlook and developments since the 2020 country report ............................... 6 

2.2. 
Challenges related to sustainable growth, cohesion, resilience and policies for the next 
generation ................................................................................................................................................. 8 

2.3. 

Challenges related to the green and digital transition ............................................................... 12 

Green dimension ................................................................................................................................. 12 

Digital dimension ................................................................................................................................ 15 

3.  Objectives, structure and governance of the plan.............................................................................. 20 

3.1.  Overall strategy of the plan ........................................................................................................ 20 

3.2. 

Implementation aspects of the plan ........................................................................................... 23 

4. 

Summary of the assessment of the plan ............................................................................................ 28 

4.1. 

Comprehensive and adequately balanced response to the economic and social situation ...... 28 

4.2. 

Link with country-specific recommendations and the European Semester ............................... 36 

4.3.  Growth potential, job creation, economic, institutional and social resilience, European Pillar of 
Social Rights, mitigating the impact of the crisis, and social territorial cohesion and convergence ...... 47 

4.4. 

The principle of ‘do no significant harm’ .................................................................................... 55 

4.5.  Green transition .......................................................................................................................... 57 

4.6. 

Digital transition .......................................................................................................................... 63 

4.7. 

Lasting impact of the plan ........................................................................................................... 68 

4.8.  Milestones, targets, monitoring and implementation................................................................ 71 

4.9. 

Costing ........................................................................................................................................ 75 

4.10.  Controls and audit ....................................................................................................................... 77 

4.11.  Coherence ................................................................................................................................... 80 

5.  Annex .................................................................................................................................................. 84 

5.1. 

Climate tracking and digital tagging table .................................................................................. 84 

1 

 
 
 
 
 
 
 
1.  EXECUTIVE SUMMARY 

France was one of the Member States most severely hit by the COVID-19 crisis. GDP fell 
by 8.1% in  2020 and is  expected in  the Plan to  grow by 5% in  2021 and by 4% in  2022. The 
impact of the fall in activity on the labour market has been largely mitigated by important policy 
support measures. After falling by 0.9 p.p. in 2020, total employment is expected to increase by 
0.4  p.p.  in  2021  in  the  Plan.  The  general  government  deficit  reached  9.2%  of  GDP  in  2020 
mainly due to the sharp contraction in economic activity and to the discretionary policy measures 
taken in response to the COVID-19 crisis, amounting to 3.3% of GDP. The deficit is planned to 
decrease to 9.0% in 2021 and 5.3% of GDP in 2022, mainly due to the unwinding of temporary 
emergency  and  support  measures  and  the  expected  economic  recovery.  In  this  context,  the 
financial contribution allocated to France under to Recovery and Resilience Facility is EUR 39 
368 318 474 in non-repayable financial support, corresponding to 1.6% of GDP (2019). France 
did not request any loans. 

France’s  recovery  and  resilience  plan  pursues  the  general  objective  of  the  Facility  to 
promote  the  Union’s  economic,  social  and  territorial  cohesion  and  focuses  on  three  key 
priorities:  the  green  transition,  competitiveness,  and  social  and  territorial  cohesion.  The 
Plan  is  structured  along  nine  components,  which  are  meant  to  tackle  the  structural  challenges 
facing the French economy, exacerbated by the COVID-19 crisis. The Plan includes large-scale 
investments  and  reforms  addressing  the  ecological  transition,  continuing  efforts  to  bring 
businesses,  administration,  and  the  health  system  into  the  digital  age,  ensuring  that  workers’ 
skills are in line with business needs, promoting innovation, fostering labour market integration 
and  improving  the  framework  for  public  finances  and  efficiency  of  public  spending.  The 
recovery  and  resilience  plan  fits  into  the  larger  EUR  100  billion  recovery  strategy  at  national 
level “France Relance”. 

France’s Plan is expected to contribute to effectively addressing all or a significant subset 
of  challenges  identified  in  the  country-specific  recommendations  or  in  other  relevant 
documents  officially  adopted  by  the  Commission  under  the  European  Semester.  These 
challenges  relate  notably  to  the  sustainability  of  public  finances,  the  resilience  of  the  health 
system, improving labour market integration and skills, supporting employment, investing in the 
green and digital transitions as well as research and innovation. The Plan also helps address the 
imbalances  identified  in  macroeconomic  imbalances  procedure  (high  public  indebtedness  and 
low competitiveness), as well as the Draft Council Recommendation on economic policy in the 
euro area1 (especially supporting recovery, sustainable growth, and strengthening institutions) . 

1  Pending  final  adoption  by  the  Council,  after  endorsement  by  the  European  Council.  The  text  agreed  by  the 
Eurogroup  on  16  December  2020  is  available  at: https://data.consilium.europa.eu/doc/document/ST-14356-2020-
INIT/en/pdf.  

2 

 
 
 
                                                           
 
 
France’s  recovery  and  resilience  plan  covers  in  a  comprehensive  manner  the  six  pillars 
structuring  the  scope  of  application  of  the  Recovery  and  Resilience  Facility,  with  an 
appropriate overall balance between pillars. The green and digital pillars are well covered by 
the  Plan,  respecting  the  minimum  allocations  set  in  the  Regulation.  The  Plan  prioritises 
competitiveness, cohesion, and employment as axes for recovery, which contribute to the “smart, 
sustainable,  and  inclusive  growth”,  “social  and  territorial  cohesion”  and  “policies  for  the  next 
generation”  pillars.  Finally,  the  pillar  on  resilience  is  also  well  addressed,  notably  by 
strengthening the resilience of the healthcare system and of businesses through competitiveness-
enhancing measures.  

A large share of the investments put forward by the  French recovery and resilience plan 
are directly devoted to  fostering growth potential and strengthening economic, social and 
territorial  resilience.  The  support  to  research,  innovation  and  technology  should  strengthen 
potential  growth  in  the  medium  term  and  economic  resilience  to  shocks,  while  offering  new 
employment  opportunities.  Dedicated  reforms  presented  in  the  Plan  should  reinforce  the  long-
term  sustainability  of  public  finances,  as  soon  as  economic  conditions  allow.  The  Plan  also 
includes  many  measures  aimed  at  addressing  social  and  employment  challenges,  identified  in 
previous  country  reports,  country  specific  recommendations  and  monitored  through  the  Social 
Scoreboard. Measures to modernise health and long-term care infrastructure across the territory 
have  a  potential  to  improve  access  to  care  also  in  relatively  underserved  areas.  All  these 
measures  are  likely  to  have  an  impact  on  strengthening  social  cohesion,  health  and  social 
protection system, including through policies for youth and by reducing social vulnerabilities. 

The  green  transition  is  a  key  priority  of  France’s  recovery  and  resilience  plan,  with  four 
components dedicated to environmental and climate action. The proposed actions are in line 
with  the  strategic  orientations  set  by  the  European  Green  Deal,  and  highlight  both  the 
environmental  and  economic  benefits  of  the  green  transition  to  foster  recovery  and  resilience. 
The  plan  addresses  many  challenges  France  is  facing  as  regards  the  green  transition.  A 
significant  part  of  the  investments  proposed  in  the  plan  focus  on  the  climate  and  energy 
transition and aim to contribute to France’s 2030 targets and to its transition to climate neutrality 
by 2050. The plan also contains actions to accelerate the transition towards a circular economy as 
well as dedicated measures to support biodiversity protection and restoration. At 46.0%, the plan 
exceeds  largely  the  37%  target  of  funds  dedicated  to  the  green  transition  with  the  main 
contributions coming from investments in the energy renovation of public buildings, support to 
the  railway  sector,  and  support  to  the  development  of  the  hydrogen  sector.  No  measure  in  the 
plan is expected to ‘do no significant harm’ to environmental objectives within the meaning of 
Article 17 of Regulation (EU) 2020/852. 

3 

 
 
                                                                                                                                                                                           
 
 
France’s recovery and resilience plan is  expected to contribute to the digital transition of 
the country with a broad and cross-cutting approach. Investments in digital areas target the 
public  administration,  improving  e-identity,  businesses,  in  particular  SMEs,  the  health  and 
cultural  sector,  as  well  as  education  and  training  institutions.  Investments  are  also  planned  to 
strengthen  key  digital  capacities,  such  as  cybersecurity,  cloud,  quantum  and  5G  and  to  boost 
their  use  in  the  private  and  public  sector.  A  number  of  measures  seek  to  improve  digital 
education  and  skills  and  digital  inclusion.  Overall,  these  investments  have  the  potential  to 
increase productivity growth in the long term. The roll-out of next generation access networks, in 
particular  optic  fibre  on  the  national  territory  should  bridge  the  gap  in  terms  of  connectivity, 
especially in rural areas and the outermost regions. At 21.3%, the plan dedicates more than 20% 
of its total allocation to the digital transition. The three most important investments contributing 
to  reaching  this  target  are  the  digitalisation  of  the  health  system,  support  to  innovation  in  key 
digital technologies and the digitalisation of the State and territories. 

The  implementation  of  investments  and  reforms  planned  by  France  in  its  recovery  and 
resilience  plan  is  expected  to  have  a  lasting  impact  and  to  bring  structural  change  in  a 
number  of  areas  leading  to  a  significantly  positive  impact  on  the  economic,  social  and 
institutional resilience of the country. In particular, measures aimed at bolstering the skills of 
the labour force, the digital transition and the innovation system are expected to have a positive 
impact on long-term productivity and labour force employability. 

The implementation and monitoring process of the French recovery and resilience plan is 
ensured  at  the  highest  level  of  the  French  Government  by  the  Monitoring  National 
Committee,  attached  to  and  chaired  by  the  Prime  Minister.  It  is  assessed  as  adequate  to 
ensure effective monitoring and implementation  of the plan, including the envisaged timetable, 
milestones and targets, and the related indicators. The number of milestones and targets as well 
as  their  overall  quality  are  deemed  satisfactory.  Milestones  and  targets  tracking  the 
implementation of reforms are clear and realistic. The performance of investments will be mainly 
captured  by  the  achievement  of  targets  monitored  by  each  public  entity  in  charge  of 
implementing the measures, although some milestones are also foreseen, usually for the earlier 
stages of implementation.  

The  justification  provided  by  France  on  the  amount  of  the  estimated  total  costs  of  the 
recovery  and  resilience  plan  is  to  a  medium  extent  reasonable,  plausible,  in  line  with  the 
principle  of  cost-efficiency  and  is  commensurate  to  the  expected  national  economic  and 
social impact. France provided sufficient information and evidence that the amount of the cost 
of  the  reforms  and  investments  to  be  financed  under  the  Facility  is  not  covered  by  existing  or 
planned Union financing. The fact that sometimes the methodology used is not sufficiently well 
explained and the link between the justification and the cost itself is not fully clear precludes a 
rating of addressing this assessment criterion to a high extent. France’s recovery and resilience 
plan describes in an appropriate way the arrangements to prevent, detect and correct corruption, 
fraud and conflicts of interest when using the funds provided under the Facility.  

The  audit  and  control  systems,  coordinated  by  the  Interministerial  Commission  for  the 
Coordination of Controls, are assessed as adequate.  

4 

 
 
Finally,  France’s  recovery  and  resilience  plan  presents  strong  coherence  both  internally 
and  with  other  policies  at  national  and  European  levels.  The  nine  components  build  a 
coherent package of investments and reforms, supporting the objectives to stimulate the recovery 
of the economy, to  contribute to the twin transition and to increase France’s resilience to meet 
the challenges of the twenty-first century on the path of sustainable and inclusive growth. 

Table 1 details the assessment criteria ratings developed in this Staff Working Document that led 
to  the  approval  of  the  French  recovery  and  resilience  plan  under  the  Recovery  and  Resilience 
Facility Regulation. 

Table 1. Summary of the French recovery and resilience plan assessment for the 11 criteria set 
by the Recovery and Resilience Facility regulation. 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

(11) 

Balance
d 
Respons
e 
A 

CSR
s 

Growth
, jobs… 

DNS
H 

Green 
target 

Lasting 
impact 

Digit
al 
target 

Milestones 
and 
Targets 

Costing 

Control 
System
s 

Coherenc
e 

A 

A 

A 

A 

A 

A 

A 

B 

A 

A 

5 

 
 
 
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
2.  RECOVERY AND RESILIENCE CHALLENGES: SCENE-SETTER 

2.1. Macroeconomic outlook and developments since the 2020 country report  

The plan assumes that  the fall in economic activity in 2020 will be followed by a  gradual 
recovery, with a return to pre-crisis levels in 2022. GDP fell by 8.1% in 2020, with a sharp 
decrease in all the components of domestic demand and a negative contribution of net exports. 
According  to  the  macroeconomic  scenario  in  the  plan,  the  rebound  in  2021  is  expected  to  be 
gradual,  with  GDP  growing  by  5%  in  2021  and  by  4%  in  2022,  catching  up  with  and  slightly 
exceeding  pre-crisis  levels  in  all  domestic  demand  components.  The  rebound  projected  in  the 
plan for 2021 is expected to be driven by domestic demand, with a negative contribution of net 
exports  to  growth.  In  2022,  net  exports’  contribution  to  growth  is  projected  to  be  slightly 
positive.  Inflation  is  expected  to  remain  low:  slightly  above  1%  in  2021  and  somewhat  below 
that level in 2022. According to the Commission 2021 spring forecast, French GDP growth will 
reach 5.7% in  2021  and 4.2% in  2022. Compared to  the scenario in  the  plan, the Commission 
forecast projects a higher contribution of net exports to growth in both 2021 and 2022. Inflation 
is  projected  at  1.4%  in  2021,  before  falling  to  1.1%  in  2022.  The  macroeconomic  and  fiscal 
outlook continue to be affected by high uncertainty related to the COVID-19 pandemic and its 
economic consequences. 

The  negative  impact  on  the  labour  market  was  largely  mitigated  by  important  policy 
support measures. After falling by 0.9% in 2020, the plan projects total employment to increase 
by 0.4% in 2021, broadly in line with the Commission 2021 spring forecast, thereby remaining 
below the level of 2019. According to the Commission forecast, the unemployment rate is set to 
increase to 9.1% in 2021, before declining to 8.7% in 2022, still slightly above its 2019 level. 

While the resilience of the labour market is helping to curtail negative social consequences 
of  the  crisis,  falling  employment  will  increase  poverty  for  some  groups,  as  well  as 
inequality. Overall, France performs relatively well in terms of social conditions, ranking better 
than the average of the European Union for most of the indicators2. The gender employment gap 
continues to decline and the share of early leavers from education and training decreased from 
8.2%  to  8.0%  in  2020.  The  pre-existing  social  safety  net  and  the  emergency  policy  measures 
taken to support businesses and short-time work schemes during the COVID-19 crisis, cushioned 
about 84% of the shock in household incomes in 2020, with more than half of the effect due to 
the monetary compensation schemes3. However, other indicators have recently deteriorated, such 
as the share of people at risk of poverty or social exclusion, which has increased from 17.0% to 
17.9%  between  2017  and  2019,  contrary  to  the  decreasing  trend  in  the  EU  (from  22.4%  to 
20.9%).  While  the  youth  employment  rate  had  been  improving  prior  to  the  outbreak  of  the 

2 Eurostat, https://ec.europa.eu/eurostat/web/european-pillar-of-social-rights/indicators/social-scoreboard-indicators.  
3 Christl, M, De Poli, S., Figari, F., Hufkens, T., Leventi, C., Papini, A. and Tumino, A., The cushioning effect of 
fiscal policy in the EU during the COVID-19 pandemic, JRC Working Papers on Taxation and Structural Reforms 
No 02/2021, 2021 (forthcoming)  

6 

 
 
                                                           
COVID-19  crisis,  access  to  the  labour  market  is  still  more  difficult  for  specific  groups, 
particularly for low-skilled people with a migrant background and in the outermost regions.  

After reaching 9.2% of GDP in 2020, according to the plan the general government deficit 
is planned to gradually narrow to 3.2% of GDP in 2026. The sizeable deficit increase in 2020 
is  mainly  due  to  the  sharp  contraction  in  economic  activity  and  to  the  discretionary  policy 
measures taken in response to the COVID-19 crisis, amounting to 3.3% of GDP. According to 
the  macroeconomic  scenario  in  the  plan,  France’s  general  government  deficit  is  planned  to 
decrease from 9.0% in 2021 to 5.3% of GDP in 2022, mainly due to the unwinding of temporary 
emergency  and  support  measures  and  the  expected  economic  recovery.  Thereafter  the  general 
government  deficit  is  projected  to  gradually  diminish  to  3.2%  by  2026,  mainly  thanks  to  the 
expected economic recovery. The debt-to-GDP ratio rose sharply to 115.7% of GDP in 2020 due 
to the combined effect of shrinking GDP and fiscal stimulus, and it is set to rise further, to almost 
118% in 2021, remaining above that level in 2026. 

The crisis risks worsening some structural weaknesses of the French economy.  France was 
experiencing macroeconomic imbalances before the outbreak of the COVID-19 crisis, related in 
particular to the high level of public debt and weak competitiveness dynamics in a context of low 
productivity growth4. The crisis had a negative impact on these imbalances, especially on public 
debt.  Moreover,  private  indebtedness  also  rose  sharply,  compounding  the  risks  stemming  from 
high public debt. Despite positive recent developments, the COVID-19 shock has brought about 
a  temporary  deterioration  in  competitiveness,  with  an  increase  in  unit  labour  costs  and  a  large 
drop  of  exports  in  crucial  sectors,  such  as  tourism  and  aeronautics.  The  COVID-19  impact  on 
cost competitiveness is expected to be partially reversed in the coming years, but longer-lasting 
consequences  of  the  crisis  represent  a  negative  risk.  The  medium-term  impact  of  the  crisis  on 
productivity  is  uncertain.  This  crisis  has  encouraged  the  use  of  new  technologies,  which  may 
contribute  positively  to  productivity  trends,  but  it  has  also  increased  the  need  to  reallocate 
resources  across  economic  sectors  and  companies.  Moreover,  the  surge  in  corporate  debt  may 
affect investment decisions in the future negatively. 

The high general government debt-to-GDP ratio poses significant fiscal sustainability risks 
for France. According to the Commission Debt Sustainability Monitor 20205, France faces high 
sustainability risks in the short and medium term, mainly due to the high debt (debt requirement), 
while the contribution  of the projected increase in age-related  expenditure is  limited. Financial 
market conditions for sovereign borrowing remain favourable, with low spreads and stable credit 
ratings.  The  average  maturity  of  total  outstanding  debt  is  high  at  8.2  years  in  2020,  and  gross 
financing needs are expected to decrease from 26.5% of GDP in 2020 to 25.2% of GDP in 2021 
and 23.5% of GDP in 2022. The Recovery and Resilience Facility is expected to be a mitigating 

4 Commission Staff Working Document of 2 June 2021, in-depth review for France in accordance with Article 5 of 
Regulation (EU) No 1176/2011 on the prevention and correction of macroeconomic imbalances.  
5 See: https://ec.europa.eu/info/sites/default/files/economy-finance/ip143_en.pdf.  

7 

 
 
                                                           
factor  to  the  identified  debt  sustainability  risks,  as  it  should  support  growth  potential  through 
investments and reforms. 

The  macroeconomic  scenario  presented  in  the  plan  relies  on  plausible  macroeconomic 
assumptions, and is slightly more prudent than the Commission’s forecast. The Commission 
2021 spring forecast anticipates a slightly higher growth rate in 2021 and 2022 than expected in 
the plan, with a somewhat different growth composition. This leads to a level of activity almost 
one percentage point above the scenario underlying the plan in 2022. However, these differences 
remain  limited  given  the  range  of  uncertainty  regarding  this  forecast  exercise.  For  the  general 
government  deficit  and  debt,  the  Commission  forecasts  broadly  similar  developments  to  the 
recovery  and  resilience  plan  until  2022.  Years  beyond  2022  are  currently  not  covered  by  the 
Commission forecast. 

Table 2. Comparison of macroeconomic developments and forecast 

2020  

2026 
2019  
COM   COM   RRP   COM   RRP   COM   RRP   RRP  RRP  RRP  RRP 
1.4 
4.2 
1.5 

2021  

2022  

2023 

2024 

2025 

-8.1 

-8.2 

4.0  

5.7 

5.0 

2.3 

1.6 

1.4 

8.4 

1.1 

-1.1 

Real GDP (% change)  
Employment  (% 
change)  
Unemployment rate 
(%) 
HICP inflation (% 
change)  
General government 
balance (% of GDP)   
Gross debt ratio (% of 
GDP)   
COM: Commission 2021 Spring Forecast. 

97.6 

-3.1 

-9.2 

8.0 

1.3 

0.5 

115.7 

-0.9 

0.3 

0.4 

1.2 

1.0  

0.2  

0.1  

0.2  

0.2  

n.a. 

0.5 

9.1 

1.4 

n.a. 

8.7 

n.a.  

n.a. 

n.a. 

n.a. 

n.a. 

1.1 

1.1 

0.8 

1.2 

1.5 

1.8 

1.8 

-9.2 

-8.5 

-9.0 

-4.7 

-5.3  

-4.4  

-3.9  

-3.5  

-3.2  

115.7 

117.4 

117.8 

116.4 

116.3 

117.2 

118.0 

118.3 

118.2 

RRP: Stability Programme 2021. 

2.2. Challenges  related  to  sustainable  growth,  cohesion,  resilience  and  policies  for  the 

next generation  

The COVID-19 crisis and related restriction measures have had a considerable impact on 
French  firms’  activities.  According  to  the  Banque  de  France,  activity  levels  for  industry  and 
services during the worst of the pandemic decreased by more than 30% compared to the levels 
expected in absence of the crisis6. Industries in sectors such as transport, clothing and metallurgy 
were particularly strongly affected, with estimated capacity utilisation rates in April 2020 of less 
than 40%. In services, the food service industry as well as other sectors related to tourism such as 

6 https://www.banque-france.fr/statistiques/conjoncture/enquetes-de-conjoncture/point-de-conjoncture. 

8 

 
 
 
  
 
                                                           
accommodation were the most strongly hit, with decreases in activity of around 80%7. Thanks to 
the crisis support measures, bankruptcies in 2020 decreased by 39%8, while they remained flat in 
Q1  2021  compared  to  the  previous  three-month  period9.  However,  the  slowdown  in  firm  birth 
rates which occurred in the first part of 2020 (March to May) is likely to have an incidence on 
the  potential  of  future  high-growth  enterprises  with  some  persistent  effect  on  aggregate 
employment in France10.  

Reinforcing  competitiveness  and  productivity  growth  are  key  to  ensuring  sustainable 
growth  of  the  French  economy.  Cost-competitiveness  improved  in  recent  years  in  France 
thanks  to  moderate  growth  in  unit  labour  costs  compared  to  most  other  euro  area  and  EU 
countries.  Private  investment  was  high  and  export  market  shares  remained  broadly  stable, 
although competitiveness losses accumulated over the first decade of the 2000s had not yet been 
regained.  In  fact,  after  some  gains  since  2013,  export  market  shares  declined  in  2019. 
Productivity  growth  significantly  slowed  down  during  the  last  decade  and  remained  weak  in 
general due to, among others, structural change towards more services, weak business dynamism 
in  services,  skills  gap  and  technology  adoption  and  diffusion  gaps11,12.  The  positive  trend  in 
competitiveness  halted  with  the  outbreak  of  the  COVID-19  pandemic,  which  led  to  a  sharp 
increase in unit labour costs and a large drop of exports in crucial sectors.  

While  reforms  in  recent  years  aimed  to  improve  the  business  environment  and 
competitiveness,  a  number  of  regulatory  restrictions  in  services  remain  to  be  addressed. 
The level of such restrictions remains higher in France than in other EU countries, particularly in 
business  services,  regulated  professions  and  retail.  Those  restrictions  act  as  entry  barriers  and 
have led to low competition, high profit margins and prices, harming the competitiveness of the 
whole economy. 

The  performance  of  the  research  and  innovation  ecosystem  has  significant  margin  for 
improvement. French R&D intensity remains below the 3% GDP target for 2020 and the level 

7  https://www.banque-france.fr/sites/default/files/media/2020/06/10/point-conjoncture_avril-2020.pdf.  To  compare 
these figures with figures on the impact of the COVID-19 crisis on the ecosystems at the EU level, see the Annual 
Single Market Report 2021, SWD(2021) 351 final, 05.05.2021 
8 https://www.banque-france.fr/statistiques/defaillances-dentreprises-jan-2021.  
9 https://www.banque-france.fr/statistiques/defaillances-dentreprises-avr-2021. 
10  Benedetti  Fasil,  C.,  P.  Sedláček  and  V.  Sterk,  EU  start-up  calculator:  impact  of  COVID-19  on  aggregate 
employment.  Scenario  analysis  for  Denmark,  Estonia,  Finland,  France,  Latvia,  Lithuania,  Portugal  and  Sweden, 
2020, 
https://op.europa.eu/en/publication-detail/-/publication/b53f74f0-1805-11eb-b57e-
01aa75ed71a1/language-en# 
11 Bauer, P., Fedotenkov, I., Genty, A., Hallak, I., Harasztosi, P., Martinez Turegano, D., Nguyen, D., Preziosi, N., 
Rincon-Aznar,  A.  and  Sanchez  Martinez,  M.,  Productivity  in  Europe:  Trends  and  drivers  in  a  service-based 
economy, 2020, JRC119785. https://publications.jrc.ec.europa.eu/repository/handle/JRC119785 
12  Conseil  National  de  Productivité,  Productivité  et  compétitivité:  où  en  est  la  France  dans  la  zone  euro? Premier 
rapport du Conseil National de Productivité, 2019. 
https://www.strategie.gouv.fr/sites/strategie.gouv.fr/files/atoms/files/cnp-premier-rapport-10-juillet2019.pdf 

JRC122318. 

9 

 
 
                                                           
 
of R&D investment from the business sector is lagging behind other Member States. Innovation 
has been a decisive factor in mitigating the negative effects of the COVID crisis on businesses: 
in  2020,  innovative  companies’  income  dropped  by  half  compared  to  that  of  non-innovative 
companies13.  Regional  disparities  remain  very  important  in  terms  of  R&D  expenditure  and 
innovation  performance.  With  R&D  expenditure  of  4.75  %  of  GDP  in  2015,  Midi-Pyrénées  is 
the only region that exceeds the 3% target. Outermost regions are at the low end of the scale. The 
performance  of  France  in  research  and  innovation  is  still  hampered  by  the  complexity  of  the 
research  and  innovation  ecosystem  and  low  levels  of  efficiency  of  public  support  schemes. 
Firms’  automation  and  dissemination  of  technologies  remain  insufficient.  There  is  scope  to 
promote private investment in R&D and closer cooperation between public and private actors.  

The  French  labour  market  is  experiencing  skill  mismatches  and  significant  labour 
shortages  in  some  sectors.  These  include  the  ICT,  health  care,  engineering  and  construction 
sectors.  This  calls  for  continuous  investments  in  up  and  re-skilling,  together  with  bolder 
measures to accompany the necessary transformations linked to the green and digital transitions 
(see  Section  2.3).  The  French  government  is  rolling  out  a  number  of  measures  aimed  at 
improving access to training and guidance for the unemployed, and tackling skills mismatches. 

The  COVID-19  crisis  has  reversed  the  positive  labour  market  developments  observed  in 
recent years. After decreasing from 10.0% to 8.5% between 2016 and 2019, the unemployment 
rate dropped by 0.5 percentage points to 8.0% in 2020. Long-term unemployment fell from 4.6% 
in  2016  to  3.4%  in  2019  and  declined  further,  by  0.5  percentage  points,  in  2020.  Although 
employment  was  to  a  large  extent  protected  by  the  widely  used  temporary  short-time  work 
scheme,  sectors  such  as  tourism,  restaurants,  entertainment  and  home  care  services  were  more 
strongly affected. Despite the relatively contained effect on unemployment, the measured labour 
market slack (halo) has increased significantly. In 2021, unemployment is projected to increase 
to  9.1%  of  the  labour  force,  according  to  the  Commission  2021  spring  forecast.  Despite  the 
improvement foreseen in 2022, the unemployment rate is set to remain above its 2019 level. 

The COVID-19 crisis is aggravating the existing structural weaknesses in the integration of 
vulnerable  groups.  Low-skilled,  young  people,  people  with  a  migrant  background  (especially 
women),  and  persons  with  disabilities  had  high  unemployment  rates  and  their  situation  further 
deteriorated in 2020. The unemployment rate of non-EU born workers stood at 15.6% in Q3 of 
2020, nearly double the rate of EU-born workers (8.2%). The effect of the COVID-19 crisis also 
increased  the  segmentation  of  the  labour  market:  workers  on  temporary  contracts,  especially 
interim contracts, as well as the self-employed have been among the most affected by the crisis. 

13  Marques  Santos,  A.,  Haegeman,  K.,  Moncada-Paternó-Castello,  P.,  Impact  of  COVID-19  and  earlier  crises  on 
firms’ innovation and growth: a comparative analysis, 2021 (forthcoming), JRC125490 
https://ec.europa.eu/jrc/en/rhomolo/publications 

. 

10 

 
 
                                                           
Moreover, vulnerable groups are likely to be more exposed to the increasing risk of poverty and 
social exclusion. 

The  2019  Country  Report  highlighted  the  large  economic  disparity  between  outermost 
regions  and  metropolitan  France.  The  2020  Country-specific  recommendations  called  for 
targeted actions towards these regions to address the risk of growing disparities in the context of 
the pandemic. These regions should benefit from specific support and access to EU programmes 
and funds in line with Article 349 TFEU. 

High  and  rising  public  and  private  debt  present  challenges  to  fiscal  sustainability  and 
financial stability. Public expenditure rose to 62.7% of GDP in 2020, up from 55.6% in 2019 
and still the highest in the EU. The persistence of the high level of public expenditures in France 
raises  concerns  in  terms  of  utility  and  efficiency,  justifying  a  comprehensive  approach  to 
enhance its efficiency and contain its dynamics in a context of high public debt. Private debt has 
steadily increased since 2000 for both households and non-financial corporations, reaching 153% 
of  GDP  in  2019.  The  COVID-19  crisis  has  led  to  a  surge  in  private  indebtedness  to  175%  of 
GDP, mainly due to the contraction in economic activity. The public guarantee scheme set up by 
the  state  played  an  important  role  in  the  crisis  to  support  lending,  especially  to  SMEs.  Both 
household  and  non-financial  corporation  debt  is  now  in  excess  of  prudential  thresholds.  The 
banking sector’s solvency has remained relatively solid but profitability has dropped. 

The  pension  system  remains  complex.  More  than  40  different  pension  schemes  co-exist  in 
France. These schemes apply to different groups of workers and functions according to different 
sets  of  rules.  The  Government  engaged  into  a  reform  to  progressively  unify  the  rules  of  these 
schemes, with a view to simplifying the functioning of the pension system notably to improve its 
transparency, fairness and efficiency. The reform was put on hold by the COVID-19 crisis. 

The  COVID-19  crisis  has  highlighted  shortcomings  of  the  traditionally  well-performing 
French  health  system.  The  first  wave  of  the  COVID-19  pandemic  highlighted  difficulties  to 
ensure adequate numbers of health workers, critical supplies and personal protective equipment. 
The  management  of  the  health  crisis  (notably  concerning  the  supply  of  masks,  respirators, 
intensive  care  beds,  tests,  vaccination)  also  revealed  problems  in  terms  of  coordination,  e.g. 
between  healthcare  providers  at  territorial  level  and  between  private  and  public  actors. 
Challenges  are  aggravated  by  persisting  regional  disparities,  with  insufficient  availability  of 
certain  health  services  in  underserved  regions,  in  particular  the  outermost  regions.  In  the 
digitalisation  of  health  services  France  has  traditionally  lagged  behind  other  Member  States, 
although the take-up of e-health, in particular the use of electronic medical records (EMRs) and 
telemedicine, has increased in recent years. 

France is facing challenges in improving educational outcomes for vulnerable groups, such 
as  those  from  lower  socio-economic  or  migrant  backgrounds.  Educational  outcomes  are 
strongly impacted by the socio-economic background of students, and early school leaving rates 
show significant regional disparities, with particularly high rates in the outermost regions (21.3% 

11 

 
 
in 2018 versus 8.9% in mainland France). Distance teaching has highlighted the need for a high-
performing digitalised education system, built upon effective teacher training and equal access to 
quality  digital  education  and  its  learning  environment.  It  is  estimated  that  6%  of  pupils  in 
primary  education  and  10%  in  secondary  education  experienced  difficulties  following  classes 
during lockdowns14. 

2.3. Challenges related to the green and digital transition  

Green dimension  

The recovery and resilience plan should contribute to the green transition and at least 37% 
of the financial allocation needs to contribute to climate objectives. The measures in the plan 
shall  contribute  to  achieving  the  2050  climate  neutrality  objective,  and  the  2030  energy  and 
climate  targets,  taking  into  account  Member  States’  national  energy  and  climate  plans.  They 
should  also  contribute  to  meeting  environmental  targets  for  waste,  water,  pollution  control, 
sustainable  mobility,  biodiversity  protection  and  restoration,  marine  and  water  resources,  and 
support the transition to sustainable food systems as well as to a circular economy as appropriate, 
while ensuring that nobody is left behind.  

Climate and energy policies 

In sectors not covered by the EU Emissions Trading System (ETS), France will most likely 
reach its 2020 greenhouse gas (GHG) emissions reduction target, while risking to fall short 
of  its  2030  target,  in  the  absence  of  additional  measures.  France’s  National  Energy  and 
Climate  Plan  (NECP),  which  was  notified  to  the  Commission  on  17  April  2020,  sets  out  a 
national target of a 37% greenhouse gas emissions reduction in those sectors by 2030 compared 
to 2005. With existing measures, the Commission estimates that France would fall short of this 
2030 target by 11 percentage points. This is mostly due to the transport, building and agriculture 
sectors which together account for 64% of the country’s greenhouse gas emissions. Compliance 
with the 2030 target in sectors not covered by the Emissions Trading System could however be 
possible,  should  France  comply  with  the  carbon  budgets  included  in  the  national  low-carbon 
strategy  (Stratégie  Nationale  Bas  Carbone,  SNBC,  revised  in  March  2020),  and  take  relevant 
additional measures to implement the scenario to achieve France’s objective of climate neutrality 
by 2050. 

Greenhouse gas emissions in the transport sector (roughly a third of all emissions) should 
drop by 28% compared to their 2015 level by 2030 to accommodate the climate neutrality 
scenario. However, transport is the only sector where greenhouse gas emissions have increased 
over the last 30 years. Meeting climate targets in transport will require in particular accelerating 

14 Direction de l'évaluation, de la prospective et de la performance (“DEPP”), note 20.26 of July 2020.  

12 

 
 
 
                                                           
the electrification of vehicles and road infrastructure, and expanding the use of alternative fuels, 
including advanced biofuels and low-carbon and renewable hydrogen. There will also be a need 
to  accelerate  the  modal  shift  towards  cleaner  transportation  modes  in  freight  and  passenger 
transport, through ensuring their promotion. 

The current pace of renewable energy deployment is not enough to meet France’s 2020 and 
2030  targets.  France  is  set  to  miss  its  2020  renewables  target  of  a  share  of  renewable  energy 
sources in final energy consumption of 23%, likely by at least 5 percentage points. The share of 
renewables  in  the  energy  mix  increased  from  9.6%  in  2005  to  17.2%  in  2019  and  France’s 
proposed objective for 2030 is to reach 33%. However, challenges remain to bridge the 2020 gap 
and  to  achieve  the  2030  target.  Challenges  include  simplifying  the  regulatory  framework  to 
implement large-scale energy projects – costs to access the grids are high and the lead time for 
licensing  and  permitting,  including  for  grid  connections,  is  long.  The  deployment  of  enabling 
energy infrastructure such as charging stations for electric vehicles, upgrades to transmission and 
distribution systems, heat pumps and district heating, and cooling networks based on renewable 
energy and waste heat, is progressing slowly. 

France  is  falling  short  of  its  energy  efficiency  targets  for  2020  and  faces  the  major 
challenges of decarbonising and increasing the energy performance of the building sector. 
France’s  energy  consumption  levels  remain  above  the  expected  levels  under  the  Energy 
Efficiency  Directive  for  2020  (see  table  3  below).  In  its  National  Energy  and  Climate  Plan, 
France envisages a 20% reduction of its energy consumption by 2030 compared to 2012 levels, 
which is considered in line with the EU’s 2030 targets15. The decarbonisation and upgrade of the 
energy  performance  of  the  building  stock  (which  represents  45%  of  final  energy  consumption 
and  25%  of  greenhouse  gas  emissions)  represent  major  challenges.  According  to  its  National 
Energy and Climate Plan, France will need to invest annually an additional EUR 15 to 25 billion 
until 2030 into the renovation of buildings. 

The  electricity  grid  is  relatively  well-connected  to  neighbouring  countries,  but  challenges 
remain  to  further  enhance  connections  and  develop  new  infrastructure.  According  to  the 
National Energy and Climate Plan, France targets a 16.5% interconnected capacity by 2030, up 
from  the  2019  level  of  11.4%,  and  above  the  EU  recommendation  of  15%.  Given  the  planned 
reduction of the share of nuclear in the energy mix and with a view to integrating the rising share 
of  renewable  energy  into  the  electricity  system  by  2030,  enhanced  and  more  flexible  grid 
connections  will  be  necessary  in  the  country  and  across  borders,  in  particular  with  the  Iberian 
Peninsula.  In  addition  to  the  charging  infrastructure  for  electrical  vehicles,  the  transition  of 
industry and heavy-duty transport will require new infrastructure to produce and distribute new 
energy carriers such as hydrogen. 

15 For a detailed assessment, see: Economidou, M., Ringel, M., Valentova, M., Zancanella, P., Tsemekidi Tzeiranak, 
S., Zangheri, P., Paci, D., Ribeiro Serrenho, T., Palermo, V. and Bertoldi, P., National Energy and Climate Plans for 
2021-2030 under the EU Energy Union, 2020, JRC122862. 

13 

 
 
                                                           
France needs EUR 45 to 85 billion of additional investments per year to be on a trajectory 
towards carbon neutrality, according to the estimate in the  National  Energy and Climate 
Plan  for  the  period  of  2019  to  2032.  This  includes  around  EUR  15-25  billion  for  the  energy 
efficiency of buildings, EUR 20-50 billion for clean transport and EUR 10 billion for renewable 
energy and electricity grids.  

Environmental policies 

While the legal framework is in place to transition to a circular economy, France has not 
yet  implemented  all  necessary  steps,  especially  as  regards  waste  management.  France  has 
put  in  place  an  ambitious  national  circular  economy  roadmap,  a  National  Pact  on  Plastic 
packaging,  and  legislation  to  tackle  waste  and  promote  the  circular  economy  (with  pioneering 
provisions  regarding  planned  obsolescence,  durability  for  products  including  a  Reparability 
Index,  extending  producers’  responsibility,  and  new  prohibitions  on  single-use  plastics  and 
destruction of unsold food and non-food products). Nevertheless, many provisions remain to be 
implemented, and their enforcement may prove challenging. Some efforts are necessary to meet 
the new recycling targets. The municipal waste recycling rate of 44% is below the 2025 target of 
55%. Investments needed to reach the EU recycling targets for municipal and packaging waste 
are estimated at EUR 4.6 billion. 

The negative effects of climate change are increasingly felt. There have been increased floods 
of river basins (Loire, Rhône) and coastal areas (Atlantic regions), and increased cyclone risks in 
outermost  regions,  highlighting  the  importance  of  investments  to  promote  climate  change 
adaptation, risk prevention and disaster resilience. 

Despite  progress  in  increasing  nature  protection,  there  is  still  considerable  room  for 
improvement, notably on implementing conservation measures effectively and better integrating 
nature protection into other policies. This would in turn help build resilience to threats such as 
climate  change,  food  insecurity  or  disease  outbreak.  In  France,  only  28%  of  the  species  of 
community  interest  and  22%  of  the  habitat  types  of  community  interest  are  in  a  favourable 
conservation  status.  France  assessed  the  total  costs  of  conservation  and  management  of  the 
Natura 2000 network for 2021-2027 at EUR 4.6 billion. 

France  does  not  meet  all  air  quality  standards,  especially  in  its  largest  agglomerations. 
France is facing high levels of particulate matter (PM10) and nitrogen dioxide (NO2) and needs 
to  take  action  to  reduce  the  exceedance  of  limit  values  in  line  with  Directive  2008/50/EC,  as 
requested by the EU Court of Justice regarding emissions of nitrogen dioxide16, by reducing the 
main sources of emissions from transport, energy production and heat generation. 

Specific  tax  measures  such  as  tax  reductions  or  exemptions  largely  contribute  to  the 
attractiveness of fossil fuels. As pointed out by the Institute for Climate Economics report on 

16 Judgment of the Court of Justice of 24 October 2019, case C-636/18.  

14 

 
 
                                                           
the draft budget 202017, most of the unfavourable spending takes the form of tax spending (EUR 
16  billion  out  of  17).  Four  tax  measures  alone  imply  that  25%  of  national  greenhouse  gas 
emissions are little or not taxed: (i) exemptions of excise duties on kerosene, (ii) reduced excise 
rates  for  heavy-load  vehicles,  (iii)  reduced  tax  rates  for  non-road  diesel,  and  (iv)  reduced  tax 
rates for road diesel compared to gasoline. The government recently announced a gradual phase 
out  of  reduced  rates  for  non-road  diesel,  to  be  finalised  by  2022.  France  also  announced  the 
removal of the ‘malus’ ceiling applied to new privately-used vehicles (currently the penalty for 
vehicles  exceeding  172g CO2/km  is  limited  to  EUR  12  500),  to  strengthen  the  market  signal 
towards  cleaner  vehicles.  France  is  among  the  Member  States  willing  to  open  a  debate  at  EU 
level on the taxation of kerosene for planes and marine fuel for boats.  

The  table  below  gives  an  overview  of  France’s  objectives,  targets  and  contributions  under 
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 
on the Governance of the Energy Union and Climate Action. 

Table 3. France’s objective, targets and contributions under the Governance of the Energy Union 
and Climate Action. 

National targets and contributions  

Binding target for greenhouse gas 
emissions compared to 2005 under the 
Effort Sharing Regulation (%) 

National target/contribution for 
renewable energy: Share of energy from 
renewable sources in gross final 
consumption of 
energy (%) 

Latest 
available 
data 

2020 

2030 

Assessment of 2030 
ambition level 

-14% 

-14% 

-37% 

17.2% 

23% 

33% 

As in the Effort 
Sharing Regulation 

Adequate (33% is 
the result of the 
Renewable Energy 
Sources formula in 
the Regulation (EU) 
2018/1999)  

Primary energy consumption (Mtoe) 

239.5 

219 

202.2 

Modest 

National contribution for energy efficiency: 

Final energy consumption (Mtoe) 

148.9 

131.4 

120.9 

Sufficient 

Level of electricity interconnectivity (%) 

16.5% 

N.A. 

Source: Assessment of the final national energy and climate plan of France, SWD (2020) 909 final. 

17 https://www.i4ce.org/download/a-first-360-degree-climate-assessment-of-frances-state-budget/.  

15 

 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
Digital dimension  

The  recovery  and  resilience  plan  should  contribute  to  the  digital  transition  and  at  least 
20% of the financial allocation needs to contribute to digital objectives. The measures in the 
plan should, inter alia, contribute to the digital transformation of the economic and social sectors 
(including  public  administration,  public  services,  and  the  justice  and  health  systems).  The 
objective of the measures in the plan should be to improve not only the competitiveness, but also 
the  resilience,  agility  and  security  of  companies  and  public  actors,  all  while  ensuring 
inclusiveness. 

France  ranks  15th  in  the  European  Commission’s  Digital  Economy  and  Society  Index 
(DESI) for 202018.  It  is  improving its performance in  digital,  in  line with the EU average;  the 
gap with the EU’s top performers however remains. 

France  ranks  18th  in  connectivity,  and  fast  broadband  (next  generation  access)  network 
coverage in rural areas and in the outermost regions remains low. This is despite significant 
progress in very-high capacity network roll-out and in fixed broadband uptake. France is notably 
deploying  fibre-to-the-home  through  its  France  Très  Haut  Débit  plan  (THD),  backed  by 
EUR 3.3  billion  of  public  investment.  In  early  2020,  France  announced  a  new  target  with  the 
objective  of  reaching  100%  fibre-to-the-home  coverage  by  2025.  Fast  broadband  (next 
generation access) coverage reached 69% in 2020, improving by 7 p.p., but still remaining well 
below the EU average of 87%. While digital connectivity is significantly improving, fixed very-
high capacity network coverage in rural areas stands at 18.4% of all households, which is below 
the EU average of 27.8%. France achieved significant progress in 4G coverage as a result of the 
“new deal for mobile” of 2018. 4G coverage reached 99.8% in populated areas in France. France 
has  a  5G  readiness  2020  DESI  index  above  EU  average,  resulting  from  the  completion  of  the 
700MHz  band  and  the  3.4  -  3.8  GHz  auctions.  France  is  in  the  phase  of  5G  deployment, 
including 5G corridors, nation-wide and cross-border.   

France  ranks  17th  in  the  human  capital  2020  DESI  index,  with  the  share  of  people  with 
“above basic digital skills” remaining low and below the EU average. In recent years, France 
introduced  the  national  Investment  Plan  in  skills  2018-2022  (“Plan  d’investissement  dans  les 
compétences”). However, France continues to show a low level of digital skills of the population. 
In 2019, 43% of the population between 16 and 74 years old lacked basic digital skills (against 
the EU average of 42%), including about 26% with no digital skills. Low digital skills were also 
identified  as  a  country-specific  weakness19  to  explain  France's  low  productivity  growth.  This 
hinders  the  development  of  a  digital  economy  and  society  (e.g.  home  schooling,  e-learning,  e-

18 See: https://digital-strategy.ec.europa.eu/en/policies/desi-france.  
19 https://ec.europa.eu/info/sites/default/files/economy-finance/en_1errapportcnp-10july-final.pdf.  

16 

 
 
 
                                                           
commerce,  e-health,  etc.)  and  has  led  to  exclusion  during  the  COVID-19  pandemic.  The 
educational offer of advanced digital technologies by French universities is on average slightly 
above  the  EU:  the  proportion  of  masters’  programs  teaching  artificial  intelligence,  high-
performance  computing  and  data  science  is  4.1%,  1.5%  and  5.9%  respectively  for  France 
(against 3.9%, 1.2% and 4.6% respectively in the EU)  20. However it remains very far from the 
frontrunners in this area (US and UK), which have on average 10 times the number of courses in 
these areas compared to France and offer the same amount of courses as the whole EU27. 

Despite  large  improvements  in  the  integration  of  digital  technology  by  businesses,  firms 
still have a comparatively low uptake of information and communication technologies. The 
2019  National  Productivity  Board  report  pointed  out  the  low  uptake  of  information  and 
communication  technologies  in  firms  and  the  low  degree  of  automation  and  digitalisation  as 
country-specific  factors  explaining  weak  productivity  growth.  Despite  progress  accomplished 
over the past years, the percentage of companies having high levels of digital intensity in France 
(13.4% in 2020) remains below the EU average (15.4%). The share of companies employing ICT 
specialists  is  also  lower  in  France  (18%)  than  it is  in  the  EU  (19.3%).  In  the  EU  landscape  of 
artificial intelligence (AI), France hosts  14.8% of all EU economic agents  (firms,  research  and 
government  institutions),  and  15.1%  of  all  EU  artificial  intelligence  firms.  The  number  of 
artificial intelligence firms per EUR billion of GDP reaches 0.71, against 0.84 for the EU (JRC 
AI TES Dataset 2020) 21. Furthermore, a much higher percentage of growing French companies 
(36-38%)  view  digital  security,  regulation  and  lack  of  skills  as  significant  barriers  to  their 
digitalisation, which compares to EU averages of between 17-21%22. 

France  performs  above  the  EU  average  in  digital  public  services,  ranking  12th.  This  is 
thanks to continuous progress in public administrations’ digital modernisation and by improving 
the  provision  of  digital  public  services  for  business.  Over  the  past  years,  France  has  made 
significant  improvements  in  the  domain  of  digital  public  services,  reflected  in  a  better 
performance  in  DESI  for  digital  public  services  and  in  digital  post  and  electronic  documents. 
However, France scores below the EU average on cross-border electronic identity (eID) services 
according  to  the  2020  eGovernment  Benchmark  report23.  Only  8%  of  people  living  or  coming 
from  abroad  can  use  electronic  identity  to  access  and  use  online  services  provided  by  public 
authorities  such  as  obtaining  a  permit  for  moving  or  contesting  a  fine.  Only  23%  of  foreign 

TES 

20 Righi,  R., López-Cobo, M., Alaveras, G., Samoili, S., Cardona, M.., Vázquez-Prada Baillet, M., Ziemba, L.W., 
and  De  Prato,  G.,  Academic  offer  of  advanced  digital  skills  in  2019-20.  International  comparison,  2020, 
JRC121680. https://publications.jrc.ec.europa.eu/repository/handle/JRC121680 
21AI 
Joint 
Dataset 
https://data.jrc.ec.europa.eu/collection/id-0126 
22 Benedetti Fasil, C, Domnick, C, del Rio, J-C, Fákó, P, Flachenecker, F., Gavigan, J. P., Janiri, M. L., Stamenov, 
B.  and  Testa,  G.,  High  Growth  Enterprises  in  the  COVID-19  Crisis  Context  demographics,  environmental 
innovations, digitalization, finance and policy measures, 2021, JRC124469. 
https://publications.jrc.ec.europa.eu/repository/handle/JRC124469 
23 https://digital-strategy.ec.europa.eu/en/library/egovernment-benchmark-2020-egovernment-works-people.  

Commission, 

European 

Research 

Centre, 

2020, 

2021. 

17 

 
 
                                                           
 
businesses  can  use  electronic  identity  for  cross-border  services  such  as  requesting  a  refund  of 
value-added tax. Concerning e-health, France could benefit from stronger digital services helping 
prevention  and  preparedness.  The  COVID-19  crisis  has  highlighted  shortcomings  in  the  health 
system’s preparedness to address pandemic outbreaks and digital services should help in making 
better  use  of  e-health  in  such  cases.  In  the  justice  system,  digitalisation  could  help  reduce  the 
average time needed to resolve civil cases, which is currently long (over 400 days in 2019)24. 

Concerning  digital-related  investment  in  R&D,  France  benefits  from  an  attractive  and 
resilient network of start-ups. The French tech start-up ecosystem attracted record investments 
in  recent  years,  notably  EUR  5.4  billion  in  investment  in  2020,  despite  the  COVID-19  crisis. 
Among numerous initiatives, French Tech plays a major role in building a framework for start-
ups  to  scale  up.  The  landmark  ‘DeepTech  Generation  Plan’  (Plan  Génération  Deeptech)  was 
launched  in  2019,  with  EUR  1.3 billion  in  funding  over  5  years  (2019-2023)  to  support 
disruptive innovation. 

France  is  committed  to  strengthening  the  EU’s  capacities  related  to  advanced  digital 
technologies.    France  is  a  pioneer  in  cloud  computing,  hosting  the  major  European  cloud 
provider,  in  microprocessors  and  is  committed  to  increasing  the  use  of  digital  applications  for 
public  administrations  both  at  central  and  local  level.  It  is  active  in  the  Euro-HPC  Joint 
Undertaking and has a national strategy on quantum. France has also a cybersecurity strategy to 
boost  the  offer  of  cybersecurity  products  and  services  and  encourage  the  uptake  of  innovative 
solutions  by  the  economy  and  the  public  administration.  France  is  also  revising  its  Artificial 
Intelligence  strategy,  first  launched  in  2018,  encouraging  the  development  of  human-centric 
solutions and tools for artificial intelligence uptake by businesses. France is therefore in a strong 
position  to  reinforce  its  industrial  capacities  in  advanced  technologies  such  as  next-generation 
cloud, microelectronics, 5G or cybersecurity. 

On  the  greening  of  the  digital  sector,  the  French  government  has  put  in  place  proactive 
policies and measures to support the growth of the digital clean tech sector. Innovative start-
ups  and  SMEs  play  a  critical  role  in  developing  and  adopting  clean  digital  technologies.  The 
global  French  start-up  ecosystem  is  made  up  of  more  than  18  000  start-ups,  over  370  000 
employees, 240 incubators, and 50 accelerators. The French government published a roadmap to 
make the tech sector greener in February 2021. The aim of this national strategy is to improve 
knowledge of the various impacts of digital technology on the environment, to control them and 
to put the potential of digital innovation at the service of the ecological transition. It focuses both 
on  analysing  the  impact  of  digitalisation  on  the  environment  and  also  on  how  to  use  digital 
solutions  to  boost  the  green  transition.  The  roadmap  includes  a  number  of  existing  and  new 
measures,  such  as  the  establishment  of  an  environmental  barometer  for  digital  actors  or  the 
support for artificial intelligence projects for ecology. 

24 Figure 8, 2021 EU Justice Scoreboard.  

18 

 
 
                                                           
 
As  a  leader  in  the  digital  domain,  France  has  the  potential  to  contribute  significantly  to 
cross-border and multi-country projects. Due to the size of its economy and central position, 
France’s  investments  in  digital  capacities  could  strongly  orient  other  Member  State’s  joint 
investments, potentially on cloud and data infrastructure, microelectronics, and 5G corridors. 

Graph  1.  Relative  performance  of  France  compared  to  EU  average  for  the  five  DESI  2020 
dimensions 

Note: EU aggregate corresponds to EU28, based on 2020 DESI report. 

19 

 
 
 
 
 
 
Box 1: Progress towards the Sustainable Development Goals 

The  objectives  of  the  Sustainable  Development  Goals  (SDGs)  are  integrated  in  the  European 
Semester  since  the  2020  cycle.  This  provides  a  strong  commitment  towards  sustainability  in 
coordination  of  economic  and  employment  policies  in  the  EU.  In  that  respect,  this  section 
outlines  France’s  performance  with  respect  to  Sustainable  Development  Goals  with  particular 
relevance  for  the  four  dimensions  underpinning  the  recovery  and  resilience  plans  (green 
transition, fairness, digital transition and productivity, and macroeconomic stability), indicating 
possible  areas  where  investments  and  reforms  in  line  with  the  objectives  of  the  Facility  could 
further accelerate the progress on the Sustainable Development Goals. 

20 

 
 
 
 
 
Green transition 

France performs well in the green transition goals by, for instance, recording low greenhouse 
gas emissions per capita (7th lowest in the EU) and per unit of GDP (2nd lowest in the EU), with 
a  strong  decreasing  trend  in  the  past  years.  The  circular  economy  (SDG  12)  is  also  well 
developed  with  the  third  highest  circularity  rate  in  the  EU.  On  biodiversity  (SDG 15),  France 
took  actions  to  limit  the  artificial  conversion  of  soil,  which  had  been  increasing  consistently 
since  2006.  The  share  of  renewable  energy  in  gross  final  consumption  (17.2%  in  2019)  is 
however below objectives (23% by 2020) and the EU average (19.7%). 

Fairness 

France  performs  better  than  the  EU  average  in  nearly  all  the  indicators  related  to 
inequalities for SDG 1 - No poverty (e.g. 9th lowest rate of people at risk of poverty), SDG 5 - 
Gender equality (e.g. first in the EU for women in senior management), and SDG 10 - Reduced 
inequalities (e.g. income inequalities well below EU average). 

However, the employment rate of recent graduates does not follow the positive EU evolution in 
recent  years.  Regional  inequalities  between  the  mainland  and  its  outermost  regions  persist,  in 
particular with Mayotte, the region in the EU with the lowest GDP per capita. 

Digital transition and productivity 

On SDG indicators related to R&D (e.g. R&D expenditure, R&D personnel, employment in 
knowledge-intensive  manufacturing  and  services)  France  performs  slightly  above  the  EU 
average. In respect to quality education (SDG 4), France ranks 9th in the EU with 49.4% (2020) 
of people aged 30-34 graduated from tertiary education. 

Macroeconomic stability 

The high rate of long-term unemployment hampers the performances of France in SDG 8 - 
Decent Work and Economic Growth. Investment, as share of GDP, is however high (23.6% in 
2019).  France  has  been  making  progress  in  SDG 16  -  Peace  and  justice  while  still  recording  a 
high rate of perceived violence (4th in the EU). 

3.  OBJECTIVES, STRUCTURE AND GOVERNANCE OF THE PLAN 

3.1. Overall strategy of the plan  

The  investments  and  reforms  planned  under  the  French  recovery  and  resilience  plan  are 
part of a broader recovery plan called “France Relance”, adopted by the French Parliament 
under the 2021 budget bill, and currently being deployed. The Recovery and Resilience Facility 
should  provide  about  40%  of  the  funding  for  the  EUR  100  billion  investments  planned  under 
“France Relance”. France submitted a plan with estimated costs amounting to EUR 40 950 000 
000 while its maximum financial contribution is EUR 39 368 318 474, calculated in accordance 
with  Article  11  and  stated  in  Annex  IV  to  the  Recovery  and  Resilience  Facility  Regulation 

21 

 
 
 
(including the horizontal support line). The estimated total cost of the Plan corresponds to 104% 
of the maximum financial contribution. 

France’s recovery and resilience plan focuses on three key priorities: the green transition, 
competitiveness,  and  social  and  territorial  cohesion.  The  plan  is  structured  along  nine 
components,  which  are  meant  to  tackle  the  structural  challenges  facing  the  French  economy, 
exacerbated  by  the  COVID-19  crisis.  The  plan  includes  large-scale  investments  and  reforms 
addressing  the  ecological  transition,  continuing  efforts  to  bring  businesses  and  administration 
into  the  digital  age,  ensuring  that  workers’  skills  are  in  line  with  business  needs,  promoting 
innovation,  continuing  to  reduce  unemployment  and  improving  the  efficiency  of  public 
spending. 

The nine components are organised as follows: 

  Component 1: Renovation of buildings. It includes investments on energy efficiency in 
public  buildings  (at  EUR  3.8  billion,  one  of  the  biggest  measures  of  the  plan),  private 
residential  buildings,  social  housing  and  SMEs;  and  reforms  of  housing  policy  and 
environmental  rules  for  the  construction  of  new  buildings.  This  component  aims  to 
increase  the  rate  and  depth  of  building  renovation,  and  to  contribute  to  the  green 
transition of the building sector.  

  Component  2:  Biodiversity,  circular  economy,  agriculture  and  forestry.  It  includes 
measures for fighting the artificial conversion of natural soil, mitigating  seismic risk in 
outermost  regions,  improving  drinkable  water  supply  and  sewage  networks,  preserving 
biodiversity  and  protected  areas,  decarbonising 
industrial  production  processes, 
developing  the  circular  economy,  accelerating  the  agricultural  transition  and  restoring 
forests. It also features the Climate and Resilience law as a key reform.  

  Component  3:  Green  infrastructures  and  mobility.  It  includes  investments  to  foster 
the  development  of  sustainable  transport,  therefore  aiming  at  reducing  the  carbon  and 
environmental  footprint  of  transport.  The  measures,  covering  a  large  spectrum  over 
different transport modes, concern a support plan for the rail sector (the biggest measure 
of  the  plan  at  EUR  4.4  billion),  developing  projects  for  public  transport  in  urban  areas 
(tram, buses, metro, rail), support to the deployment of  electric vehicle charging points, 
improvements  of  the  inland  waterways  infrastructure,  greening  projects  in  ports, 
development of road infrastructure reserved for public/shared transportation, and support 
schemes for the purchase of zero- or low-emission vehicles. It also includes support for 
improving the resilience of energy infrastructures at distribution level in rural areas.  
  Component 4: Green energy and technologies. It aims to foster innovation policies in 
key green technologies, also having in mind their economic potential. It includes a broad 
scheme  to  finance  innovative  projects  in  priority  green  areas  (renewable  or  low-carbon 
hydrogen, 
recycling, 
industry  decarbonisation,  sustainable  agricultural  systems, 
innovative  buildings,  mobility,  biosourced  products)  and  specific  measures  to  develop 
value  chains  for  decarbonised  hydrogen  and  to  support  the  green  transition  of  the 
aeronautics sector.  

22 

 
 
  Component  5:  Business  support.  It  includes  an  investment  (financial  instruments)  to 
strengthen SMEs’ equity and a reform aimed at simplifying the regulatory environment. 
It also includes a reform to ensure that companies benefiting from public support respect 
other criteria, such as the social and environmental dimensions that are essential for the 
recovery. 

  Component 6: Technological sovereignty. It includes measures to support employment 
in  R&D  and  to  finance  innovative  projects  in  strategic  digital  technologies  (e.g. 
cybersecurity,  quantum  technologies,  cloud,  education  technology,  5G  and  the  cultural 
and  creative  sectors)  and  in  space  technologies.  It  also  includes  a  reform  to  improve 
sustainable funding for public research, to enhance the attractiveness of scientific careers, 
and to increase knowledge transfers between public research and businesses. 

  Component 7: Digitalisation of the State, territories, businesses and support to the 
cultural  sector.  It  includes  several  detailed  measures  to  digitalise  the  functioning  of 
schools and the State, including the Ministry of Interior, and to accelerate investment in 
cybersecurity. Fostering digitalisation of SMEs is done through boosting existing support 
mechanisms such as “France Num” complemented by investment support in the adoption 
of  new  technologies  in  the  framework  of  the  industries  of  the  future  scheme.  The 
component also aims at supporting (1) cultural heritage to renovate historic monuments, 
make  them  more  sustainable  and  promote  local  tourism  eco-systems;  (2)  artistic 
education  and  creation  as  well  as  (3)  the  resilience  of  strategic  cultural  sectors  mostly 
affected  by  the  current  crisis.  Moreover,  this  component  includes  reforms  aimed  at 
strengthening  the  public  governance  framework  and  enhancing  the  quality  of  public 
spending. 

  Component  8:  Employment,  Youth,  Disability,  Professional  training.  It  includes  a 
variety of measures relating to employment, supporting  youth, persons with disabilities, 
financing  trainings  and  skills  development  -  from  secondary  and  tertiary  education  to 
lifelong learning and professional training (including digital skills). 

  Component 9: R&D, health, territories. It brings together public investment in various 
areas  (healthcare,  research,  territorial  cohesion  and  connectivity).  Investment  projects 
presented  under  the  research  section  cover  a  very  broad  scope  from  early  childhood 
education to higher education and research. 

Table 4: The nine components of the French recovery and resilience plan and associated costs 

Component 

I: Renovation of buildings 
II: Biodiversity, circular economy, agriculture 
and forestry 
III: Green infrastructures and mobility 
IV: Green energy and technologies 
V: Business support 
VI: Technological sovereignty  
VII: Digitalisation of the State, territories, 

23 

Costs 
million) 

(EUR 

5 825 
2 086 

7 030 
5 295 
250 
3 215 
2 101 

 
 
businesses and support to the cultural sector 
VIII: Employment, Youth, Disability, 
Professional training 
IX: R&D, health, territories 

Total 

7 478 

7 671 
40 950 

3.2. Implementation aspects of the plan  

In  terms  of  consistency  with  the  national  energy  and  climate  plan  (NECP)  presented  by 
France in 2020, the recovery and resilience plan partly translates the orientation taken in 
the  NECP  in  components  1,  2,  3  and  4  and  responds  to  several  Commission 
recommendations25.  In particular, the plan puts  a strong  focus  on  energy  efficiency and  clean 
mobility. It also targets further diversification of the French energy mix by supporting innovation 
in  hydrogen.  France  is  expected  to  participate  in  planned  Important  Projects  of  Common 
European  interest  (IPCEI)  in  cooperation  with  other  Member  States  to  promote  hydrogen 
technology.  

As  regards  cohesion  policy,  several  components  of  the  French  plan  are  priorities  for 
REACT-EU  and  will  remain  for  the  2021-2027  cohesion  policy  as  well.  The  Partnership 
Agreement for the period 2021-2027, for the European Regional Development Fund (ERDF), the 
European  Social  Fund  Plus  (ESF+)  and  the  European  Maritime  and  Fisheries  Fund  (EMFF)  is 
expected  to  ensure  complementarity  and  synergy  with  the  Facility.  The  various  French 
authorities in charge of cohesion policy will avoid double funding of the same costs of projects 
and  ensure  complementarity  between  the  different  sources  of  EU  funding.  The  national  and 
regional managing authorities, in charge of preparing the programmes 2021-2027 and, for some 
of them, the just transition plans, will ensure complementarity with the Recovery and Resilience 
Facility. The partnership agreement, the 21-27 programmes including for some of them the just 
transition plans are expected to be officially submitted to the Commission during the second part 
of 2021. 

The French recovery and resilience plan contains key measures addressing agricultural transition, 
biodiversity, climate change and disparities in rural areas (in components 2, 3 and 9) which will 
complement those included in the current Rural Development Programmes supported under the 
European  Agricultural  Fund  for  Rural  Development  (EAFRD).  The  strategic  Common 
Agricultural  Policy  (CAP)  Plan  for  the  2023-2027  programming  period  is  expected  to  be 
submitted officially before 31 December 2021, depending on the adoption of CAP reform by the 
Council  and  the  European  Parliament:  French  authorities  will  ensure  avoidance  of  double 
funding and synergies between CAP funds and the Facility. 

25 European Commission Staff Working Document (2020) 909 final  - Assessment of the final national energy and 
climate plan of France 

24 

 
 
 
                                                           
Several measures of component 8 of the French recovery and resilience plan are consistent with 
the  Council  recommendation  of  30  October  2020,  'A  Bridge  to  Jobs  –  Reinforcing  the  Youth 
Guarantee'.  The  package  of  measures  “#1  jeune  #1  solution”,  several  of  which  are  featured  in 
component  8,  contributes  to  these  objectives.  The  plan  also  includes  measures  to  support 
employment and training for young people. As an additional measure to complement the effect 
of  the  recovery  and  resilience  plan,  France  is  also  working  towards  developing  a  Universal 
Guarantee for Youth to respond to the respective Council’s recommendation. 

France’s  recovery  and  resilience  plan  contains  some  measures  that  are  expected  to 
effectively  address  the  country’s  challenges  in  the  area  of  gender  equality  and  equal 
opportunities for all. These include reforms and investments supporting education (from early 
childhood),  vocational  training  and  access  to  employment  of  youth,  including  for  children  and 
youth  from  disadvantaged  background.  These  also  include  specific  measures  to  promote 
recruitment of workers with disabilities, including in the public service. The plan also draws the 
lessons from the crisis with reforms and investments supporting older persons, be they dependent 
or  not,  to  improve  their  quality  of  life  and  care.  As  regards  gender  equality,  the  key  measures 
relate  to  the  transformation  of  the  public  service  with  quantitative  objectives  for  women  in 
management  positions  and  to  pay  transparency  obligations  for  companies.  Moreover,  the 
measure setting out how companies benefitting from recovery and resilience plan funds should 
contribute  to  economic,  social,  and  environmental  transformations  includes  the  obligation  for 
companies to publish an index measuring progress in the area of gender equality. 

The  French  recovery  and  resilience  plan  is  broadly  consistent  with  the  challenges  and 
priorities identified in the most recent Draft Council Recommendation on economic policy 
in  the  euro  area26  (EAR).  The  plan  contributes  to  EAR  1,  ensuring  a  policy  stance  which 
supports the recovery, as it implements measures contributing to the resilience of the health and 
social  security  system,  in  particular  by  strengthening  the  healthcare  and  socio-medical  sectors 
(component  9  R&D,  health,  territories),  as  well  as  social  measures  supporting  employment 
(component  8  Employment,  Youth,  Disability,  Professional  training).  Actions  focused  on  the 
qualification of the labour force (Component 8) help to mitigate the social and labour impact of 
the  crisis.  The  quality  of  the  country’s  public  financial  management  should,  among  others,  be 
strengthened  by  the  digitalisation  of  the  public  administration  and  fiscal  structural  reforms 
(Component  7  Digitalisation  of  the  State,  territories,  businesses  and  support  to  the  cultural 
sector). 

26  Pending  final  adoption  by  the  Council,  after  endorsement  by  the  European  Council.  The  text  agreed  by  the 
Eurogroup  on  16  December  2020  is  available  at: https://data.consilium.europa.eu/doc/document/ST-14356-2020-
INIT/en/pdf.  

25 

 
 
                                                           
 
 
Concerning  EAR  2  to  further  improve  convergence,  resilience  and  sustainable  and 
inclusive  growth,  components  1  to  4  promote  the  climate  transition.  Components  6  to  9 
include  investments  to  promote  the  digital  transformation.  Component  7  should  support 
educational  and  pedagogical  innovation  through  digitalisation  and  modernisation.  Measures  to 
strengthen vocational education and training and reskilling and upskilling (component 8) should 
enhance productivity, employment and labour market integration. 

The  plan  addresses  EAR  3  on  strengthening  national  institutional  frameworks,  mostly 
through component 5 – Business support. This component aims at simplifying the regulatory 
environment  for  companies  and  reduce  administrative  burdens.  Digitalisation  measures  in 
component 9 are expected to boost the digital transition of the national health system. 

On  EAR  4  on  ensuring  macro-financial  stability,  reforms  and  investment,  component  5 
includes financial instruments to strengthen SMEs’ equity and component 7 addresses the 
quality of public finance. In addition, component 5 includes a reform to ensure that companies 
benefiting  from  public  support  respect  other  criteria,  such  as  the  social  and  environmental 
dimensions that are essential for the recovery. 

Some elements of the French recovery and resilience  plan should contribute to EAR 5 on 
completing the Economic and Monetary Union and strengthening the international role of 
the euro.  Generally, measures in  components 5  should have  a positive impact  on the business 
environment and the removal of bottlenecks to  investment. Component 7 includes reforms that 
will introduce a multiannual expenditure rule that should ensure consistency between the annual 
budget bills and the multi-year objectives, and that introduce an annual assessment of measures 
taken, enhancing the quality of public spending. These measure contribute to the resilience of the 
Economic and Monetary Union as a whole. 

The French recovery and resilience plan has been prepared by the Ministry of Economy, Finance 
and Recovery, in coordination with the Ministries responsible for policy areas developed in each 
component. 

The  “France  Relance”  plan,  which  includes  the  investments  part  of  the  recovery  and 
resilience plan, has been subject to several consultations. The consultation process, driven by 
the Ministry of Economy, targeted associations representing employers and unions, professional 
associations and companies for the measures related to businesses and employment; economists 
and  institutions  for  the  cohesion  and  balance  of  the  plan;  and  non-governmental  organisations 
and think tanks for the measures related to climate change. Regional and local authorities were 
involved  in  the  preparation  of  the  plan,  to  ensure  coherence  with  cohesion  funds  and  raise  the 
needs  of  territories,  closer  to  the  economic  and  social  realities  on  the  ground.  The  Economic, 
Social  and  Environmental  Council  was  also  consulted  several  times.  A  National  Monitoring 
Committee  on  the  Recovery  Plan,  chaired  by  the  Prime  Minister  and  composed  of 
representatives  of  local  and  regional  authorities,  heads  of  public  institutions,  economists, 
members  of  Parliament,  senators,  members  of  the  European  Parliament  and  social  partners,  is 
responsible for ensuring that the timetable for undertaking the measures is properly implemented 
and  maintained.  A  second  meeting  of  the  Committee  on  8  February  2021  provided  an  initial 

26 

 
 
review  of  the  implementation  of  “France  Relance”  six  months  after  its  adoption.  To  ensure 
ownership  by  the  relevant  actors,  it  is  crucial  to  involve  all  local  authorities  and  stakeholders 
concerned,  including  social  partners,  throughout  the  implementation  of  the  investments  and 
reforms included in the plan. 

To  ensure  swift  implementation  of  the  plan,  a  General  Secretariat  for  the  recovery  and 
resilience  plan  has  been  set  up  under  the  dual  authority  of  the  Prime  Minister  and  the 
Minister  of  Economy,  Finance  and  Recovery.  It  will  monitor  the  implementation  of  the 
recovery plan, measure by measure, in close contact with the prefects of regions and the officials 
of each ministry. 

The  implementation  of  the  recovery  and  resilience  plan  is  also  monitored  in  particular  by  the 
Directorate-General for the Treasury, the Budget Directorate, the Directorate-General for Public 
Finance  and  the  Social  Security  Directorate.  At  local  level,  the  prefects  of  regions  and 
departments  are  responsible  for  ensuring  the  application  of  the  recovery  and  resilience  plan. 
Regional monitoring committees including State services, representatives of local authorities and 
social  partners are in  charge of monitoring progress  on projects  in  the regions,  identifying and 
resolving possible bottlenecks. Information on the progress of each measure in the plan must be 
submitted  on  a  monthly  basis  to  the  Secretariat-General  responsible  for  the  recovery  and 
resilience  plan.  As  regards  the  reforms  presented  in  the  plan,  their  effectiveness  is  monitored 
specifically  by  each  ministry  concerned.  Attached  to  each  Minister,  an  adviser  is  specifically 
responsible  for  monitoring  and  implementing  reforms.  Inter-ministerial  coordination  is  carried 
out  by the General  Secretariat for European Affairs (SGAE), which will collect  and centralise, 
together  with  the  Ministry  of  the  Economy,  Finance  and  Recovery  supporting  documents 
demonstrating the achievement of the milestones related to the reforms included in the plan. The 
achievement of the targets included in the plan will be monitored regularly and centrally by the 
Secretariat-General  responsible  for  the  recovery  and  resilience  plan  on  the  basis  of  the 
information  collected  from  the  relevant  ministries.  Inter-service  technical  meetings  will  be 
organised  at  least  twice  a  year  by  the  General  Secretariat  for  European  Affairs  (SGAE)  to 
identify  any  risks  in  achieving  targets  and  milestones  and  decide  on  corrective  measures  to 
address the risks identified. 

The French government has prepared a national communication strategy on the recovery 
and resilience plan to ensure the visibility of its benefits to citizens. First, a specific logo has 
been  created  and  will  be  attributed  to  all  projects  financed  by  the  “France  Relance”  plan, 
including  the  projects  part  of  the  plan.  A  specific  logo  “Financed  by  the  European  Union  –
NextGenerationEU"  will  be  used  for  projects  financed  with  the  support  of  the  Recovery  and 
Resilience  Facility,  in  compliance  with  article  34  of  the  Regulation  establishing  the  Recovery 
and Resilience Facility. Second, the recovery and resilience plan is published on the Ministry of 
the Economy, Finance and Recovery’s website. A scoreboard allows the deployment of the plan 
to  be  followed.  Third,  a  communication  plan  will  also  be  dedicated  to  the  French  Parliament, 
local authorities and unions. 

The  plan  contains  a  security  self-assessment  for  investments  in  digital  capacities  and 
connectivity for three measures: the ultrafast broadband plan, the digitalisation of the State and 

27 

 
 
Territories,  and  mobility  and  teleworking  in  the  Ministry  of  Interior.  Technical  and  strategic 
measures  of  the  EU  5G  toolbox  are  also  relevant  for  the  measures  in  the  fourth  ‘Programme 
d’Investissements  d’Avenir’  related  to  5G,  where  calls  for  projects  or  calls  for  interest  are  still 
take  place.  Strategic  measures  mentioned  in  the  security  self-assessment  would  need  to  be 
closely monitored during the implementation of the plan. 

State  aid  and  competition  rules  fully  apply  to  the  measures  funded  by  the  Recovery  and 
Resilience Facility. Union funds channelled through the authorities of Member States, like the 
Recovery and Resilience Facility funds, become State resources and can constitute State aid if all 
the other criteria of Article 107(1) TFEU are met. When this is the case and State aid is present, 
these  measures  must  be  notified  and  approved  by  the  Commission  before  Member  States  can 
grant the aid, unless those measures are covered by an existing aid scheme or comply with the 
applicable  conditions  of  a  block  exemption  regulation,  in  particular  the  General  Block 
Exemption  Regulation  (GBER) declaring certain categories of aid  compatible with  the internal 
market in application of Articles 107 and 108 TFEU. When State aid is  present and it requires 
notification, it is the duty of the Member State to notify State aid measures to the Commission 
before  granting  them,  in  compliance  with  Article  108(3)  TFEU27.  In  this  respect,  the  State  aid 
analysis carried out by France in the recovery and resilience plan cannot be deemed a State aid 
notification. In as far as France considers that a specific measure contained in the recovery and 
resilience plan entails de minimis aid or aid exempted from the notification requirement, it is the 
responsibility of France to ensure full compliance with the applicable rules. 

Irrespective of whether they comply with the EU’s State aid regime, measures taken under this 
framework  should  be  compatible  with  the  EU’s  international  obligations,  in  particular  under 
World Trade Organization rules. 

27 Commission Regulation 651/2014, OJ L 187, 26.6.2014, p. 1 

28 

 
 
 
 
 
                                                           
4.  SUMMARY OF THE ASSESSMENT OF THE PLAN 

4.1. Comprehensive  and  adequately  balanced  response  to  the  economic  and  social 

situation  

The French recovery and resilience plan features 70 investments and 22 reforms, for a total 
of EUR 40.95 billion (the maximum financial contribution for France is EUR 39.4 billion). 
These  are  a  subset  of  the  national  plan  “France  Relance”  and  are  spread  out  over  nine 
components that each have a particular focus (see Section 3.1). 

France’  recovery  and  resilience  plan  covers  in  a  comprehensive  manner  the  six  pillars 
structuring the scope of application of the Facility (Article 3): (i) green transition, (ii) digital 
transformation, (iii) smart, sustainable and inclusive growth, (iv) social and territorial cohesion, 
(v)  health  and  economic,  social  and  institutional  resilience,  and  (vi)  policies  for  the  next 
generation. The coverage of the French plan’s components toward the six pillars is summarised 
in Table 5. All pillars are covered by at least one component, while a component may contribute 
to several pillars. 

Table 5. Coverage of the six pillars of the  Facility by the  French  recovery  and resilience plan 
components. 

Pillars: 

Green 
transition 

Digital 
transformation 

Component 1 –  Building 
renovation  

● 

Smart, 
sustainable 
and 
growth 

inclusive 

and 

Social 
territorial 
cohesion 

○ 

 ○ 

and 

and 

Health, 
economic, 
social 
institutional 
resilience 

Policies 
the 
generation 

for 
next 

● 

○  

● 

● 

○ 

○ 

○  

Component 2 – 
Biodiversity,  circular 
economy, agriculture and 
forestry 
Component 3 – Green 
infrastructures and 
mobility  
Component 4 – Green 
energy and technologies  
Component 5 – Business 
support   
Component 6 – 
Technological sovereignty  
Component 7 – 
Digitalisation of the State, 
territories, businesses and 
support to the cultural 
sector 
Component 8 – 
Employment, Youth, 
Disability, Professional 
training 
Component 9 – R&D, 
health, territories  
Key:  “●”  investments  and  reforms  of  the  component  significantly  contribute  to  the  pillar;  “○”  the  component 
partially contributes to the pillar 

 ○ 

● 

○ 

● 

○ 

○ 

○ 

● 

○ 

○ 

● 

○ 

● 

○ 

● 

● 

○ 

○ 

● 

● 

○ 

● 

29 

 
 
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
 
  
 
  
  
  
The range of actions of the plan corresponds to the one of the Facility with an appropriate 
overall  balance  between  pillars.  Allocations  to  the  green  and  digital  transitions  exceed  the 
requirements of the recovery and resilience facility Regulation (respectively 37% and 20%), and 
the plan therefore contributes to these pillars significantly. The French plan (as well as “France 
Relance”) also prioritises competitiveness and cohesion as axes for the recovery. The former can 
be associated to the “smart, sustainable, and inclusive growth” pillar while the latter corresponds 
to the “social and territorial cohesion” and “policies for the next generation” pillars. Finally, the 
pillar  on  resilience  is  also  well  addressed,  notably  by  strengthening  the  resilience  of  the 
healthcare system and of businesses through competitiveness-enhancing measures. 

Green transition 

France’s  plan  focuses  significantly  on  supporting  the  green  transition,  with  four 
components  (1  to  4)  dedicated  to  this  pillar,  representing  a  total  of  EUR  20.2  billion.  In 
particular,  EUR  5.8  billion  of  costs  are  estimated  for    the  renovation  of  buildings;  EUR  2.1 
billion  to  biodiversity,  circular  economy,  agriculture  and  forestry;  EUR  7.0  billion  to  green 
infrastructures and mobility; and EUR 5.3 billion to green energy and technologies. The French 
authorities  estimate  that  these  investments  would  contribute  to  directly  reducing  60  million 
tonnes of CO2 over the next 40 years. 

The  construction  and  use  of  buildings  represent  25%  of  all  greenhouse  gas  emissions  in 
France, and the investments in the renovation of buildings are expected to yield significant 
energy  savings  and  reductions  in  greenhouse  gas  emissions.  The  flagship  investment  under 
the component 1 on building renovation is the renovation of public buildings (EUR 3.8 billion), 
which is targeted to result in average energy savings and reductions in greenhouse gas emissions 
of  more  than  30%  compared  to  the  situation  prior  to  the  renovation.  Investments  under  the 
component also include the renovation of social housing, private housing, and buildings owned 
or operated by SMEs and micro enterprises. 

Under  component  2  on  biodiversity,  circular  economy,  agriculture  and  forestry,  the  plan 
foresees  measures  that  combat  the  artificial  conversion  of  natural  soils;  support  the 
circular  economy;  mitigate  seismic  risks  in  the  outermost  regions  and  secure  drinking 
water  and  wastewater  networks;  decarbonise  industry;  accelerate  the  agricultural 
transition; and restore forests. A “Climate and Resilience law” with the objective to contribute 
to the greenhouse gas emissions reduction target for 2030 and resulting from consultations with 
citizens is also part of this component. 

The  purpose  of  component  3  on  green  infrastructures  and  mobility  is  to  foster  the 
development  of  modes  of  transport  alternative  to  road  and  to  accelerate  the  transition  of 
the road transport sector to cleaner vehicles. According to the plan, carbon emissions from the 
transport  sector  represented  38%  of  all  greenhouse  gas  emissions  in  France  in  2017.  96%  of 
these  emissions  come  from  road  transport,  and  should  be  reduced  by  investing  in  cleaner 
vehicles  and  alternative  modes  of  transport.  The  plan  provides  notably  for  a  very  significant 

30 

 
 
investment  to  support  SNCF  Réseau  (EUR  4.05  billion),  the  railway  infrastructure  manager  in 
France, to modernise the railway network. Further investments aim to improve public transport 
in urban and rural areas. The component also features investments to foster the development of 
charging  points  for  electric  vehicles,  to  improve  the  infrastructure  of  inland  waterways,  to 
support  projects  aimed  at  greening  ports,  to  support  the  development  of  road  infrastructure 
reserved  for  public  or  shared  transportation,  and  to  support  schemes  for  the  transition  to  clean 
road  vehicles.  It  also  includes  support  for  improving  the  resilience  of  energy  infrastructures  at 
distribution level in rural areas. 

Component  4  on  green  energy  and  technologies  provides  for  investments  in  developing 
innovative technologies for the green transition.  It includes a specific focus on decarbonised 
hydrogen (EUR 1.9 billion), e.g. supporting research in and industrialisation of electrolysis and 
fuel  cells.  It  also  includes  investments  in  the  aeronautics  sector  (EUR  1.7  billion)  to  support 
R&D  projects  towards  the  development  of  a  wide  range  of  zero-emission  aircraft  technologies 
and solutions, and to support projects aimed at greening, modernising and digitalising production 
processes.  Investments  will  also  contribute  (EUR  1.7  billion)  to  the  French  ‘Programme 
d’Investissements  d’Avenir’,  which  will  support  research  and  innovation  projects  relating  to 
hydrogen,  decarbonisation  of 
industry,  sustainable  agricultural  systems,  recycling  and 
reincorporation of recycled materials, innovative buildings, mobility, and bio-based products and 
biofuels (see also section 4.5 for a detailed assessment of the green components). 

In  addition,  component  7 investment  supporting  artistic education (EUR 113 million) will also 
contribute  to  increasing  the  energy  efficiency  of  art  schools  and  libraries.  Some  measures  of 
component  9  on  R&D,  health,  territories  contribute  to  the  green  transition  by  focusing  on  the 
renovation of buildings in the medical sector and of residential care homes for the elderly. 

Digital transformation 

The development of key digital technologies is supported by the Investment Programme for 
the Future (‘Programme d’Investissements d’Avenir’) in component 6 (EUR 1.8 billion) and 
includes, among others, cybersecurity, quantum computing and cloud computing. Measures 
to support the digitalisation of education and cultural and creative sectors will also be supported. 
In quantum computing, the objective is to have a complete prototype of a first-generation general 
quantum computer by 2024, master quantum technologies (including accelerators, simulators and 
quantum  computers,  business  software  for  quantum  computing,  sensors,  communication 
systems) and to have a complete industrial production chain for Silicon 28, in particular to enable 
the possible production of qubits. In cloud computing, France aims to create competitive cloud 
solutions in technological segments (infrastructure, platforms and software), with the purpose of 
supporting France and Europe’s autonomy over this strategic technology. The expected impacts 
are the development of a supply of trusted cloud services aimed at reducing the carbon footprint 
and the construction of a data-driven economy. See also section 4.6 for a detailed assessment of 
the digital components. 

31 

 
 
Under component 7, the plan includes investments for the digitalisation of several sectors. 
Investments  include  EUR  1  billion  for  the  digitalisation  of  the  State  and  territories.  (including 
equipment  for  the  digitalisation  of  schools  and  higher  education  institutions,  digital  identity 
cards, digitalisation of the administrative services) and EUR 385 million for SMEs and mid-caps 
(support for the creation of a website, digitalisation of management process and adoption of new 
technologies). 

The  recovery  and  resilience  plan  also  includes  investments  in  digital skills,  as part  of  the 
measures targeting general skills development. These measures, included in component 8, will 
support financing training courses for workers (e.g. for  employees in  short-time work schemes 
(EUR 800 million) as well as topping up individual learning accounts for digital training courses 
(EUR 25 million), distance learning opportunities for the unemployed (EUR 160 million)) and 
investing in digital platforms to develop distance learning courses, including immersive modules 
based on virtual reality (EUR 304 million). Moreover, hiring subsidies for apprenticeships (EUR 
2.3 billion) shall increase the digital skills of youth, as the apprenticeship programmes have the 
purpose  of  preparing  employees  for  future  challenges,  in  many  cases  with  a  focus  on  digital 
skills. Dedicated resources will therefore be devoted to reskilling and upskilling in digital areas 
and to digital inclusion. 

The ultrafast broadband plan (‘France Très Haut Débit’) will be boosted by an additional 
EUR  240  million  to  improve  connectivity  in  particular  in  rural  areas.  The  ultrafast 
broadband  plan  invests  in  infrastructures  with  the  aim  of  accelerating  the  rollout  of  next 
generation  access  internet,  including  based  on  optic  fibre,  across  the  territory  of  France.  The 
government’s overarching goal is to generalise next generation access, in particular optic fibre, 
by 2025. 

Component 9 includes EUR 2 billion for the health system (national infrastructure, digital 
medical records, interoperability, secure exchange of data, training of health professionals). 
Investments  in  the  digitalisation  of  the  State  and  of  the  territories  should  increase  the 
performance of the public administration through technological upgrades and contribute to more 
inclusiveness. 

Smart, sustainable and inclusive growth 

Several  measures  spread  across  different  components  aim  to  strengthen  France’s 
competitiveness  and  productivity,  as  well  as  to  improve  research,  development  and 
innovation. 

Component  2  includes  EUR  300  million  of  support  to  industrial  decarbonisation,  an 
important  competitiveness  factor  for  industry  in  the  medium  term.  Component  4  includes 
innovation support of EUR 1.7 billion for aeronautics, a flagship sector for France, with support 
for the development of clean airplanes using hydrogen or biofuels, and the set-up of a fund that 
will  invest  in  industrial  research  and  the  modernisation  of  the  aeronautics  industry.  It  also 

32 

 
 
contains  a  EUR  1.4  billion  investment  in  R&D  to  support  the  development  of  key  green 
technologies for aircraft decarbonisation. (See previous sub-section on the green transition). 

SMEs’ competitiveness and capacity to invest in the long term are supported in component 
5 (“business support”). It contains a EUR 250 million investment under which Bpifrance will 
set  up  a  fund  to  invest  in  regional  investment  funds  that  will,  in  turn,  take  equity  positions  in 
SMEs  alongside  private  investors.  Component  5  also  includes  the  ASAP  law  reform 
(acceleration and simplification of public action). The ASAP law serves to facilitate access to the 
administration  and  to  reduce  administrative  and  regulatory  burdens  for  firms  and  citizens  (see 
Section 4.3). 

Component  6  includes  EUR  3.2  billion  worth  of  measures  that  support  key  digital 
technologies  and  R&D,  and  thereby  also  contribute  clearly  to  productivity  and 
competitiveness of French companies. The amount is made up of the strands of the investment 
programme for the future dedicated to key digital technologies (EUR 1.8 billion, described under 
the  previous  sub-section)  and  innovative  businesses  (EUR  750  million),  support  to  the  space 
sector  of  EUR  365  million,  and  a  scheme  to  preserve  R&D  employment  of  EUR  300  million. 
The EUR 750 million for the Investment Programme for the Future included in this total has a 
strong focus on start-ups and SMEs. It seeks to finance feasibility studies and industrial research, 
to commercialise research and to help young researchers start companies. The EUR 300 million 
investment in R&D seeks to preserve employment and improve cooperation between public and 
private  research  by  promoting  mutually  beneficial  exchange  programmes.  The  support  to  the 
space sector includes support for R&D (EUR 170 million) and is expected to allow the provision 
of high-speed internet coverage by satellite to the most remote areas (“zones blanches”), which is 
critical for improving productivity. The reform of the multiannual research law included in this 
component aims at promoting and facilitating R&D&I (see Section 4.3). 

Components 7 and 9 include funds for supporting the digitalisation of SMEs and increasing the 
budget of the national research agency to improve the success rate of calls for projects (EUR 385 
million and EUR 428 million respectively). 

Component 8 includes investments and reforms which have the potential to foster economic 
growth  in  an  inclusive  manner.  Students  are  notably  supported  through  the  creation  of 
additional places in higher education (EUR 256 million) and workers through access to training, 
in line with pre-identified skills needs, increasing their mobility on the labour market (EUR 1.7 
billion).  This  component  also  aims  at  fostering  the  labour  market  integration  of  unemployed 
through guidance and access to training. 

Component  9  further  includes  estimated  costs  of  EUR  750  million  to  strengthen  the 
ecosystems  of  education,  research,  valorisation  and  innovation.  This  is  done  by  supporting 
the  transition  of  universities  towards  a  more  active  role  in  the  innovation  process  and  more 
generally in the economy. The ambition is to have universities fit for purpose in training the next 
generation  of  citizens,  active  in  the  society  and  the  economy,  and  at  the  centre  of  innovation 

33 

 
 
ecosystems  (linking  with  local  businesses,  start-ups,  public  authorities,  and  civil  society).  This 
dimension  will  include  funding  to  support  the  transformation  of  universities  (see  next  sub-
section). 

Social and territorial cohesion 

Component 1 contributes to improving social cohesion by reducing energy poverty and by 
supporting investments in the renovation of social housing (EUR 0.5 billion). 

Important reforms and investments to strengthen territorial cohesion are also included in 
component  7.  Territorial  cohesion  is  boosted  by  the  4D  law  (differentiate,  deconcentrate, 
decentralise, reduce complexity – “decompléxifier”) and the draft constitutional law on the “right 
to differentiation”, both of which partially allows for transfer of powers from the State to local 
communities  (further  discussed  in  Section  4.3).  Investments  related  to  cultural  heritage  (EUR 
280  million),  artistic  education  (EUR  113  million)  and  supporting  and  modernising  strategic 
cultural sectors most affected by the current crisis (EUR 309.5 million) also improve territorial 
cohesion  as  they  should  benefit  local  stakeholders  and  provide  targeted  support  to  local 
territories. 

In  addition,  the  cross-cutting  reform  of  public  service,  through  revised  recruitment  procedures 
and  reinforcement  of  the  equal  treatment  and  opportunity  principle,  is  expected  to  further 
contribute to the social cohesion. 

Component 8 is dedicated to social and territorial cohesion through investments earmarked 
to fostering worker mobility on the labour market through access to training, in line with current 
and future skills needs,  as well as to supporting the labour market integration of the youth and 
persons with disabilities. It contains investments targeting youth employment (EUR 4.5 billion), 
professional training (EUR 1.7 billion) and the employment of persons with disabilities (EUR 58 
million).  Besides  the  apprenticeship  programmes  and  the  training  of  employees  in  short-time 
work schemes (see sub-section on digital transformation), flagship investments include EUR 800 
million of subsidies for companies hiring young people under 26 years old, amounting to up to 
EUR 4000 per person hired and with an expected impact on 660 000 young people in total. The 
resources  of  ‘France  Compétences’  are  topped-up  by  EUR  750  million,  which  will  be  used 
mainly  to  support  apprenticeship  and  professionalisation  programmes.  Inequalities  in  the 
education  system  are  targeted  through  renovation  and  creation  of  further  places  in  boarding 
schools  for  excellence  (EUR  50  million),  as  well  as  mentoring  programmes  by  university 
students  to  help  disadvantaged  youth  expand  their  horizons  and  define  their  professional 
ambitions (EUR 10 million). 

Component 9 foresees investments in health (EUR 6 billion), research and education (EUR 
1.2  billion)  and  support  to  local  territories  (EUR  500  million)  that  serve  to  further 
strengthen  social  and  territorial  cohesion.  Flagship  measures  include  a  EUR  2.5  billion 
investment  in  the  health  system,  where  a  generally  high  indebtedness  is  weighing  on  health 
institutions’ ability to invest. Part of the investment is allocated specifically at the regional level, 
by  regional  health  agencies  (ARS).  The  investments  support  the  modernisation  of  the  health 

34 

 
 
system, e.g. by allowing for the renovation of buildings, and serve to improve the resilience and 
quality of care, e.g. by supporting the integration of hospital and outpatient care or by ensuring 
the availability of proper equipment. EUR 1.5 billion is invested in the renovation of residential 
care homes for the elderly (EHPAD), e.g. to improve the private facilities available to residents 
and  to  create  spaces  for  accommodating  residents  with  cognitive  difficulties  (such  as  sensory 
stimulation rooms). 

EUR  750  million  under  component  9  is  allocated  to  supporting  the  transformation  of 
higher  education  institutions  and  research  in  the  education  system.  It  finances  the 
transformation  strategy  of  higher  education  institutions  to  reach  excellence  and  international 
standards  and  of  school  education  through  innovation  and  new  forms  of  organisation  and 
management. It provides financing for alternative funding mechanisms, laboratories, equipment, 
research  programmes,  and  strengthening  technological  transfer  in  line  with  the  research 
programming law (further described in Section 4.3). These measures, together with a EUR 428 
million  increase  in  the  budget  of  the  national  research  agency  (ANR),  should  increase  the 
attractiveness of the research profession and lead to higher employment of researchers. 

Health, and economic, social and institutional resilience  

Several  measures  contribute  significantly  to  increasing  economic  resilience.  Under 
components  5  and  6,  such  measures  include  strengthening  the  equity  of  SMEs,  investing  in 
innovative companies  and key digital  technologies,  and the ASAP law reform (see sub-section 
on smart, sustainable and inclusive growth). Under component 7, a reform of the public finance 
governance  framework  aims  to  reinforce  budgetary  commitments  and  to  stabilise  and  reduce 
public  debt  when  economic  conditions  allow.  The  reform  will  introduce  a  multiannual 
expenditure rule that should ensure consistency between the annual  budget  bills and the multi-
year  objectives,  and  will  extend  the  responsibilities  of  the  French  High  Council  of  Public 
Finances (Haut Conseil des Finances Publiques). Moreover, component 7 also embeds a reform 
aimed at enhancing the quality of public spending and introducing an annual assessment of the 
measures  taken,  also  in  compliance  with  the  expenditure  trajectory  of  the  public  finance 
programming  law.  The  contribution  of  these  reforms  to  debt  reduction  in  the  medium  to  long 
term  will  depend  on  the  degree  of  ambition  of  the  expenditure  rule  and  of  the  evaluation  of 
spending,  whose  parameters  are  to  be  defined  in  the  implementation  phase.  If  implemented 
successfully,  these  reforms  should  provide  the  larger  fiscal  space  needed  to  enhance  France’s 
capacity to counter possible negative shocks. 

Regarding  social  resilience  and  the  social  protection  system,  several  measures  in  component  8 
and 9 are expected to contribute to the implementation of the principles of the European Pillar of 
Social Rights and the Porto declaration adopted on 7 May 2021, translating into improvements of 
the indicators of the Social Scoreboard accompanying the Pillar (see Section 4.3). 

Measures  under  component  8  oriented  towards  employability  and  enhancing  skills  (EUR 
7.2  billion  in  total)  are  expected  to  contribute  to  strengthening  social  resilience.  The  main 

35 

 
 
measures  are  discussed  in  the  sub-section  on  social  and  territorial  cohesion.  As  part  of  these 
measures,  France  is  suggesting  to  pursue  a  number  of  policies  in  line  with  the  Commission 
Recommendation on Effective Active Support to Employment (EASE). While emergency short-
time  work  schemes  helped  France  to  preserve  jobs  during  the  pandemic,  the  Effective  Active 
Support  to  Employment  policies proposed by  France are expected to  have a positive impact  in 
the longer run, translating into a more inclusive recovery. 

The  resilience,  effectiveness  and  accessibility  of  the  health  and  long-term  care  sectors 
should  be  strengthened  by  the  investments  and  reforms  contained  in  component  9,  with 
EUR  6  billion  dedicated  to  these  sectors.  The  amount  is  made  up  of  the  EUR  4  billion 
dedicated to medical establishments described in the previous sub-section and the investment in 
the  digitalisation  of  the  sector  (EUR  2  billion)  described  in  the  sub-section  on  the  digital 
transformation.  It  also  contains  also  contains  EUR  2.9  million  for  suicide  prevention.  The 
reforms in the health sector should increase the resilience, effectiveness and accessibility of the 
system,  notably  through  the  national  strategy  of  reform  of  the  healthcare  system  aimed  in 
particular at upgrading the careers of health personnel, rebalancing the supply of health care in 
the country and organising local care. 

Finally,  institutional  changes  are  taking  place  with  the  transformation  of  the  public  service 
reform  along  with  the  modernisation  and  digitalisation  of  public  services,  as  well  as  the 
digitalisation of central and local administrations, schools and health institutions. 

Policies for the next generation 

The  sixth  pillar  is  also  duly  addressed  by  measures  and  investments  proposed  mainly  in 
component  8.  Youth  employment  is  one  of  the  priorities  of  the  plan,  with  a  large  number  of 
measures amounting to EUR 4.5 billion intended to facilitate young people’s integration into the 
labour  market  (notably  through  hiring  subsidies  for  apprenticeships  and  professionalisation 
contracts  and recruitment of  young people under 26 years old) and to provide training towards 
future-oriented  sectors  and  to  help  those  who  are  far  from  the  labour  market  by  offering 
reinforced and personalised support. Further details are provided in the sub-section “Social and 
territorial cohesion”. 

Other measures in component 8 aim to address inequalities in education, albeit in a more 
limited manner given the smaller scale of the measures. Measures supporting youth in initial 
education  include  the  creation  of  additional  places  in  the  vocational  and  tertiary  education 
system  (EUR  256  million),  investments  in  renovating  and  creating  additional  boarding  school 
places  (EUR  50  million),  the  prevention  of  early  school  leaving  and  academic  guidance  (EUR 
83.5 million). In order to help alleviate the financial constraints on higher education students, the 
plan  includes  an  increase  in  State-guaranteed  student  loans  (a  targeted  increase  in  loans 
supported to EUR 580 million, expected to translate into loans for 100 000 students, at a cost of 
EUR 32 million). 

Measures in components 6, 7 and 9 aim to improve educational outcomes and digital skills 
of  young  people  and  contribute  to  the  transformation  of  the  education  and  training 
systems.  Investments  are  planned  to  strengthen  the  digital  skills  of  young  people  through  key 

36 

 
 
digital  capacities  in  education  (component  6)  and  digital  equipment  to  education  institutions 
(component  7).  Research  projects  will  reinforce  school  education  through  innovation  and  new 
forms  of  organisation  and  management,  and  support  the  transformation  strategy  of  higher 
education  institutions  to  reach  excellence  and  international  standards  (component  9)  (see  also 
human capital). 

Conclusion 

Overall,  the  measures  proposed  in  the  plan  pursue  the  general  objective  of  the  Facility  by 
promoting the Union’s economic, social and territorial cohesion, structured in the six pillars of 
Article 3 of the RRF Regulation. Significant investments in key green technologies, sustainable 
transport, building renovation and more address the green transition. Investments in key digital 
technologies,  R&D  and  the  digitalisation  of  the  administration,  education  and  SMEs,  among 
others,  contribute  to  the  digital  transformation.  The  full  implementation  of  the  Plan  would 
contribute  to  a  decisive  impulse  towards  more  sustainable  and  inclusive  growth,  including  by 
raising France’s potential growth in the medium term, by strengthening economic resilience and 
by  reinforcing  public  finances.  Social  and  territorial  cohesion  as  well  as  health  and  social 
resilience  are  addressed  through  investments  in  education,  training,  employment  and  health 
services, with several of the employment measures targeting youth specifically. 

Taking  into  consideration  all  reforms  and  investments  envisaged  by  France,  its  recovery  and 
resilience  plan  is  expected  to  represent  to  a  large  extent  a  comprehensive  and  adequately 
balanced response to the economic and social situation, thereby contributing appropriately to all 
six pillars referred to in Article 3 of the Recovery and Resilience Facility Regulation, taking the 
specific  challenges  and  the  financial  allocation  of  France  into  account.  This  would  warrant  a 
rating  of  A  under  the  assessment  criterion  2.1  in  Annex  V  to  the  Recovery  and  Resilience 
Facility Regulation. 

4.2. Link with country-specific recommendations and the European Semester  

relevant  country-specific 

According  to  the  Regulation,  the  recovery  and  resilience  plan  is  expected  to  contribute  to 
effectively addressing all or a significant subset of challenges addressed to France identified in 
the 
thereof  and 
recommendations  made  pursuant  to  Article  6  of  Regulation  (EU)  No  1176/2011  where 
appropriate,  or  challenges  identified  in  other  relevant  documents  officially  adopted  by  the 
Commission in the context of the European Semester. 

recommendations, 

fiscal  aspects 

including 

Assessment by challenges  

Table  6  presents  the  mapping  of  the  selected  challenges,  the  associated  country-specific 
recommendations  (CSRs)  and  the  nine  components  of  the  French  Plan.  The  table  does  not 
include  the  challenges  identified  in  section  2  that  are  not  backed  by  a  CSR  (e.g.  circular 
economy, air quality, advanced digital technologies, etc.). These will be covered in the dedicated 
green and digital sections. 

37 

 
 
 
France received in 2020 a recommendation to front-load mature public investment projects 
(CSR 2020 3.2) and another to promote private investment to foster the economic recovery 
(CSR 2020 3.3). Having set up a national recovery plan (“France Relance”) in September 2020 
and  participating  in  the  Facility  confirms  that  France  aims  at  using  investment  to  boost  the 
economic recovery. Public investment will be front-loaded in various sectors such as education, 
culture, health, research, public transport, digitalisation of administration, and energy renovation 
of  public  buildings.  These  investments  should  benefit  all  the  territory  including  the  outermost 
regions. The recovery and resilience plan aims also at stimulating private investment in the short 
and  medium  term.  Notably,  the  equity  base  of  firms  will  be  strengthened  to  preserve  firms’ 
capacity to invest. Private investment will be supported in many sectors including but not limited 
to  energy  transition,  building  renovation,  agriculture,  decarbonisation  of  industry,  sustainable 
transport, circular economy, aeronautic industry, and key digital  technologies (cloud,  quantum, 
electronics, etc.). 

38 

 
 
 
 
the 
Table  6.  Mapping  of  country  challenges,  2019-2020  country-specific  recommendations, 
Macroeconomic  Imbalances  Procedure  (MIP)  and  the  nine  French  recovery  and  resilience  plan 
components 

Country challenges  

(as identified in Section 2)  

Associated CSR 
(2019-2020) and 
European 
Semester 
recommendations  

C1  C2  C3  C4   C5   C6   C7   C8   C9  

Public debt sustainability  

Public finances  

2019.1, 2020.1.1, 
MIP  

Expenditure savings and efficiency gains   2019.1.3  

●  

 ●  

Complex pension system  

2019.1.4  

Firms access to finance  

Regain competitiveness  

Regulatory environment and 
administrative burden  

Invest and simplify R&D  

Competitiveness and innovation  

2020.3.1  

 MIP  

●  

 ○  

○  

○  

 ○ 

 ○  ●   ●   ○  

2019.4, 2020.4  

●  

●  

2019.3.1, 
2020.3.8  

○  

●  

●  

Labour market integration and skills  

High unemployment  

2019.2, 2020.2  

Labour market integration (vulnerable 
groups)  

Skills mismatches  

Education for vulnerable groups  

2019.2.1, 
2020.2.3  

2019.2.2, 
2020.2.2  

2019.2.1  

Health  

Resilience of the healthcare system  

2020.1.2  

○  

●  

●  

○   ●  

○   ●  

Green dimension  

Ensure long-term greenhouse gas 
reduction target  

Decrease emissions in the transport 

2019.3.2, 
2020.3.5  

2020.3.4  

●  

○   ●   ●  

○  

●   ●  

39 

●  

  ○ 

 
 
 
   
   
   
   
   
   
   
   
   
   
   
   
   
   
  
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
  
  
  
  
  
  
  
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
sector  

Accelerate renewable energies 
deployment  

Increase energy efficiency  

Develop energy infrastructures and 
interconnections  

2019.3.2, 
2020.3.5  

2019.3.2, 
2020.3.5  

2019.3.2, 
2020.3.6  

●  

○  

○  

○   ○  

Digital dimension  

Improve connectivity across the territory   2019.3.3, 
2020.3.7  

Boost digital skills of population  

Foster digitalisation of firms  

2019.2.2, 
2020.2.2  

MIP   

  ○ 

●  

●   ●   ○  

○   ●  

Key:  “●”  investments  and  reforms  of  the  component  significantly  address  the  challenge;  “○”  the  component 
partially addresses the challenge 

Public finances 

The recovery and resilience plan contains two reforms under component 7 that address the 
CSRs on public finances. First, a reform on the governance of public finance will introduce a 
steering multiannual expenditure rule, which will ensure consistency between the annual budget 
bills and the multi-year objectives, and will extend the prerogatives of the Fiscal Council (HCFP) 
(CSRs  2019.1,  2020.1.1,  Macroeconomic  Imbalances  Procedure).  It  should  help  France  adopt 
and implement a fiscal policy trajectory ensuring the long-term sustainability of public finances 
as soon as economic conditions allow. Second, a reform on the evaluation of the quality of public 
expenditure,  thus  addressing  the  recommendation  to  achieve  public  expenditure  savings  and 
efficiency gains (CSR 2019.1.3). The measure will include the stock taking of the outcome of the 
reforms  on  the  effectiveness  of  public  action  over  the  Presidential  term,  the  publication  of  an 
audit report on public finances by the Court of Audit and the inclusion of the evaluation of public 
expenditure  in  upcoming  budgetary  laws.  The  public  expenditure  impact  assessments  will  be 
strengthened in connection with the entry into force of the new public finance programming law 
from 1 January 2023, once the health crisis has passed. The assessment of the quality of public 
spending will be made a regular practice and will be assessed annually. 

The French pension system (CSR 2019.1.4) is costly but expenditure is not projected to rise 
in the long term as a percentage of GDP. The envisaged reform (centred on the unification of 
more than 42 regimes) is discussed in part I (main objectives and coherence) of the recovery and 
resilience plan, where the French authorities explain that  they plan on resuming the suspended 
parliamentary  discussions  on  the  pension  reform  with  the  aim  of  creating  a  more  equitable 

40 

 
 
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
  
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
 
universal system. The reform of the pension system is not included in a measure of the French 
plan  and  thus  not  associated  to  a  deliverables  (milestone  or  target)  under  the  Recovery  and 
Resilience  Facility.  In  view  of  its  key  importance  for  labour  mobility  and  productivity,  the 
planned pension reform will be closely monitored, including its implications in terms of fairness 
and sustainability. 

Competitiveness and innovation 

On  supporting  the  access  to  finance  of  firms  (CSR  2020.3.1),  the  recovery  and  resilience 
plan  contains  the  dedicated  component  5  aimed  at  reinforcing  the  equity  of  SMEs.  It 
includes an investment measure setting up a "fund of funds" managed by Bpifrance, which will 
invest in regional investment funds alongside private investors to take equity positions in SMEs. 
The purpose is to strengthen supported SMEs’ competitiveness and capacity to invest in the long 
term. This measure is a coherent complement to several schemes implemented in response to the 
crisis  (and  outside  of  the  plan)  whereby  the  State  provides  guarantees  on  loans,  participating 
loans  or  subordinated  debt,  in  order  to  provide  emergency  liquidity  support  to  businesses. 
Component 6 also includes a measure (Support to innovative businesses) amounting to EUR 750 
million  that  will  partially  be  used  to  grant  innovation  aid  to  start-ups  to  help  them  strengthen 
their R&D activities.  

The Plan addresses competitiveness (identified as an imbalance under the Macroeconomic 
Imbalances Procedure) through different levers. First, one of the axes of the plan is oriented 
toward technological sovereignty (component 6) by investing in research and innovation in key 
digital and health technologies, such as quantum computing, cybersecurity and 5G, as part of the 
investment measure “Innovate for the resilience of economic models”. Second, the plan supports 
innovation in a flagship sector for France: aeronautics (component 4). Third, the digitalisation of 
SMEs  (component  7),  which  was  highlighted  as  a  country-specific  weak  point  in  the  National 
Productivity Board 2019 report, will be encouraged. Fourth, several reforms of the recovery and 
resilience plan tackle administrative complexity (CSRs 2019.4 and 2020.4) that could impede 
the swift implementation of reforms and investments. These include laws such as the ASAP law 
(acceleration  and  simplification  of  public  action)  and  the  4D  law  (differentiate,  deconcentrate, 
decentralise, decomplexify). However, the French recovery and resilience plan does not include 
any  measure  to  reduce  the  regulatory  restrictions  in  the  services  sector  (CSRs  2019.4.2  and 
2020.4.1), in particular on regulated professions and retail, except the facilitation  of the on-line 
sales of medicines by pharmacists. Lastly, firms are supported in their green transition, notably 
by  fostering  building  renovation  of  SMEs  (component  1)  and  developing  decarbonisation  of 
industrial  processes  (component  2).  The  national  recovery  plan  “France  Relance”  (outside  the 
plan) includes a significant measure to cut taxes on production by EUR 10 billion per year as of 
2021, which will contribute to improving the competitiveness of French businesses and address 
CSR 2019.4.1. 

Research  and  innovation  (CSRs  2019.3.1,  2020.3.8)  constitutes  a  significant  part  of  the 
recovery  and  resilience  plan,  with  a  comprehensive  package  of  investments  and  reforms 
aimed  at  strengthening  both  the  public  and  private  segments  of  the  research  and 

41 

 
 
innovation ecosystem, whilst fostering business-academia cooperation. R&D is supported in 
key green and digital technologies, aeronautics and space via the components 4 and 6, while the 
national  research  agency  sees  its  capacity  increased  (EUR  428  million)  in  component  9.  The 
measures  support  the  whole  innovation  cycle,  from  basic  research  to  the  deployment  of  new 
technologies,  and  target  both  the  public  and  private  sectors.  The  multiannual  law  for  research 
(component  6)  aims  at  reforming  public  researchers'  careers  and  fostering  public-private 
cooperation.  On  the  latter,  the  measure  on  preservation  of  private  R&D  jobs  (component  6) 
works also in this direction.  

Labour market integration and skills  

The recommendation on labour market integration (CSR 2019.2), is adequately covered by 
the employment support measures of component 8. Targeted and time-limited hiring subsidies 
help  boost  the  employment  prospects  of  selected  groups  (youth  under  26,  persons  with 
disabilities, young unemployed people between 26 and 29). It also includes early school leaving 
prevention measures and the creation of additional places in the tertiary and vocational education 
system,  which  can  help  prevent  further  unemployment.  Moreover,  job  seekers  will  overall  be 
better  accompanied  in  these  times  of  crises  through  the  time-bound  hiring  of  additional 
employment counsellors to provide tailored support. To limit the extent of unemployment in the 
research  &  development  field,  targeted  support  will  be  provided  to  new  researchers,  including 
during their doctoral studies (component 6). 

The  plan  includes  a  strong  targeting  on  the  youth,  including  the  most  vulnerable.  For 
instance, the “personalised pathway” measure in component 8 will target 16- to 18-year-olds not 
in education, employment or training (NEET). It will provide them with a four-month integrated 
programme  to  discover  employment  opportunities,  build  up  soft  skills  and  benefit  from 
personalised  counsel,  aiming  to  help  their  insertion  into  the  labour  market  or  in  a  relevant 
training programme that will increase their employment outcomes in the long run. Similarly, the 
“youth guarantee” (EUR 233 million) provides structured support to NEET youth (ages 16 to 25) 
and  several  short-term  professional  immersion  experiences  and  trainings  over  a  period  of  12 
months.  Moreover,  as  sports  can  also  provide  a  means  to  integrating  into  the  labour  market, 
youth  (under  26)  will  benefit  from  public  support  during  their  first  year  of  contract  within  an 
associative sports structure, if hired on a newly created post.  

Still  in  component  8,  further  support  to  labour  market  integration  for  youth  takes  the  form  of 
support to apprenticeships, both through support of employers and competence operators which 
help  organise  the  apprenticeship  offer  (EUR  750  million).  Similarly,  professionalisation 
contracts will be supported at higher levels over the first year of contract for a total of EUR 800 
million.  Finally,  the  subsidised  contracts  for  the  youth  (“Parcours  Emploi  Compétences  and 
Contrat  Initiative  Emploi”)  will  provide  to  some  extent  a  focus  on  urban  deprived 
neighbourhoods through reinforced financial support to young people living in these areas. 

42 

 
 
Skills mismatches will be addressed through several training measures, also in light of the 
green and digital transitions. For instance, FNE-Formation (‘Fonds National de l’Emploi’) and 
Pro-A  will  provide  training  opportunities  for  employees  benefitting  from  short-time  work 
schemes, to equip them better for new opportunities on the job market. Distance learning courses 
and platforms will be more available to unemployed persons through the opening of 30 000 new 
distance  training  opportunities,  which  happen  to  be  especially  well-suited  to  the  wider 
uncertainty linked to sanitary restrictions. Further support to distance learning will be provided 
by  equipping  training  centres  with  digital  platforms  and  supporting  the  development  of  hybrid 
training  modules,  incorporating  new  technologies  such  as  virtual  reality.  Individual  training 
rights will be topped up (EUR 25 million) to offer 25 000 persons with training for digital skills 
and reorientation towards digital careers. 

Some measures have the potential to contribute to reducing inequalities in education. For 
instance,  the  opening  up  of  additional  places  in  the  “excellence  boarding  schools”  aims  at 
providing  young students,  mostly living in  a disadvantaged environment, with  better  and more 
structured opportunities for learning. Moreover, a programme specifically aimed at widening the 
professional  horizons  of  185,000  youth,  mainly  from  underprivileged  or  rural  areas  will  be 
financed  for  EUR  10  million.  To  help  alleviate  the  financial  constraints  weighing  on  tertiary 
education  students,  the  availability  of  state-backed  loans  will increase  significantly,  potentially 
benefitting up to 56 000 students in both 2021 and 2022, up from 11 500 in 2020. 

The  employment  measures  presented  as  part  of  the  French  recovery  and  resilience  plan  are 
expected to mitigate the employment impact of the crisis, including by improving the mobility 
on the labour market of affected workers, through access to training. The employment, training 
and education actions are expected to foster the labour market integration of all, with a particular 
focus  on  the  youth.  The  combined  impact  of  these  measures  should  help  in  addressing  skills 
mismatches and boosting growth potential. 

Health 

The  French  recovery  and  resilience  plan  is  expected  to  contribute  significantly  to  the 
resilience  of  the  national  healthcare  and  long-term  care  systems  (CSR  2020.1.2).  It  has 
potential to  improve  the effectiveness,  accessibility and quality of care through better facilities 
and  equipment  (including  digital  means),  as  well  through  better  coordination  and  integration 
between  the  various  actors  in  hospital  care,  outpatient  care  and  long-term  care,  including  at 
regional  and  local  level.  In  particular,  massive  investments  included  in  component  9  will  be 
carried out for the modernisation of healthcare in territories (EUR 2.5 billion), medico-social real 
estate  (EUR  1.5  billion)  and  e-health  (EUR  2  billion).  They  will  be  accompanied  by  several 
reforms aiming at improving the healthcare system: improvement of the health system (‘Ségur de 
la santé’), reform of elderly care and autonomy and a fifth branch of the social security. 

Green dimension  

43 

 
 
Long-term greenhouse gas emissions reduction (CSRs 2019.3.2, 2020.3.5) is tackled by the 
recovery and resilience plan to a significant extent, as the Plan dedicates four components 
to  the  green  transition.  The  two  biggest  greenhouse  gas  emitting  sectors  –  transport  and 
buildings – each benefit from a dedicated component (3 and 1, respectively).  The French plan 
also features a reform measure on the new ‘Climate and Resilience’ law. An in-depth analysis is 
proposed in section 4.5. 

Decreasing  emissions  in  the  transport  sector  (CSR  2020.3.4)  is  mainly  tackled  by 
component 3. The approach followed in the recovery and resilience plan is comprehensive as it 
plans to invest in both public and private sectors and covers various transport modes (road, rail, 
inland  waterways,  and  maritime)  and  addresses  urban  mobility  improvements.  The  set  of 
measures  is  consistent  as  it  will  contribute  to  decreasing  the  emissions  in  the  most  polluting 
modes  (e.g.  electrification  of  road  transport)  while  it  will  support  the  development  of  and 
transition  to  the  less  polluting  modes  (e.g.  rail,  inland  waterways).  The  aeronautics  sector  is 
covered in component 4 with investments in R&D to support the energy transition of the sector. 
Moreover, investments for the development of decarbonised hydrogen in component 4 may also 
contribute in the medium to longer term to the decrease of emissions of the transport sector as 
hydrogen  is  considered  the  main  solution  for  the  decarbonisation  of  heavy  vehicles  (trucks, 
aircraft, and vessels). Finally, the mobility law will reform the sector to make it cleaner in order 
to reach climate objectives.   

The challenge related to energy efficiency (CSRs 2019.3.2, 2020.3.5) is well addressed in the 
plan,  notably  with  substantial  investments  in  building  renovations  (component  1)  across 
different  sectors:  private  and  social  housing,  public  buildings  and  SMEs.  The  reform  on 
thermic  regulation  of  new  buildings  (RE2020)  will  enshrine  good  practices  in  the  domain  (see 
also Section 4.5). Measures on the decarbonisation of industrial processes and circular economy 
(component 2) will also make a decisive contribution to a more efficient and sustainable use of 
energy. 

France’s recovery and resilience plan does not contain direct support measures to increase 
the production of renewable energy (CSR 2019.3.2, 2020.3.5). The most relevant investment 
related to the consumption of renewables is the ‘decarbonised hydrogen’ measure (component 4) 
for  EUR  1.925  billion  (as  part  of  a  larger  national  strategy  of  EUR  7  billion  until  2030).  The 
measure  aims  at  fostering  renewable  and  low-carbon  hydrogen  production  and  use,  notably 
through  planned  Important  Projects  of  Common  European  interest  (IPCEI).  It  will  therefore 
increase  the  demand  for  renewable  energy,  which  calls  for  additional  renewable  energy 
generation  capacity  to  match  this  demand.  In  addition,  the  recovery  and  resilience  plan  makes 
reference to the ASAP law, which contains elements to facilitate administrative requirements for 
the deployment of renewables. The plan mentions that investments integrated in the recovery and 
resilience  plan  do  not  encompass  all  green  policies  put  in  place  by  France,  and  notes  that 
renewable  energy  development  is  notably  supported  in  France  outside  the  Recovery  and 
Resilience  facility  by  green  bonds  (‘OAT  vertes’)  (See  also  section  4.5  for  further  analysis  on 
renewable energy). 

44 

 
 
Component 3 includes actions to develop energy infrastructures (CSRs 2019.3.2, 2020.3.6) 
notably reinforcing the resilience of electric distribution networks and developing charging 
stations for electric vehicles. The recovery and resilience plan does not contain any initiative on 
large-scale 
cross-border  electricity 
interconnection projects are foreseen outside the Recovery and Resilience Facility, in particular 
with Ireland and Spain. 

interconnections.  However, 

it  mentions 

that  some 

Digital dimension  

Digital  connectivity  across  the  French  territory  (CSR  2019.3.3,  2020.3.7)  has  been 
developed since 2013 by the plan ‘France Très Haut Débit’. The recovery and resilience plan 
will fuel  the  plan with  an extra EUR 240 million in  order to  reach  a new goal  of  covering the 
national  territory including rural  areas  with  next generation  access  networks, in  particular  with 
optic fibre by 2025 (component 9). 

The recovery and resilience plan aims at improving the digital skills of the population, with 
a focus on basic digital skills (CSRs 2019.2.2, 2020.2.2) mainly through components 8 and 
9.  A  detailed  analysis  of  the  digital  measures  aiming  at  investing  in  the  human  capital  is 
presented in section 4.6. 

The  digitalisation  of  firms,  in  particular  SMEs  (Macroeconomic  Imbalance  Procedure  - 
competitiveness), is directly promoted via component 7. The ‘France Num’ scheme will help 
200 000 SMEs in their digital transition, while the Industries of the Future Scheme will invest in 
3 320 SMEs and mid-caps  to  support their medium /  long-term digitalisation strategy with  the 
adoption of new technologies. 

Component  6  fosters  innovation  in  breakthrough  digital  technologies.  Public  investments 
(“Programme  d’Investissements  d’Avenir”)  support  strategies  in  the  area  of  cybersecurity, 
quantum technology, 5G, digital education, cloud, and in the cultural sector. In conclusion, the 
recovery and resilience plan addresses a vast majority of the challenges and CSRs addressed  to 
France in the field of digitalisation. 

Response to the economic and social situation  

To tackle the economic challenges of the country, the French recovery and resilience plan 
focuses on boosting investments in sectors of the future. A significant part of the investments 
will be oriented to the green and digital transitions, health and R&D with a view of enhancing 
the competitiveness of French businesses. Many measures are dedicated to businesses (access to 
finance, digitalisation, support to innovation, administrative simplification) in line with the will 
of the French authorities to regain competitiveness and industrial sovereignty. 

The weak productivity growth observed before the crisis will be addressed by investing in 
human capital with many measures aiming at supporting skills (in particular digital ones), 
the digitalisation of businesses and investing in innovation. In this respect, the recovery and 
resilience  Plan  aims  at  reinforcing  private-public  cooperation  in  research  and  the  intersectoral 
mobility  of  researchers,  which  is  critical  for  skills  development.  Those  measures  are  deemed 

45 

 
 
relevant  since  they  will  tackle  the  country-specific  weaknesses  identified  by  the  National 
Productivity Board (weak skills and technology adoptions by businesses). 

The  reforms  in  the  area  of  public  finance  aim  at  a  better  control  of  the  French  debt 
trajectory and of the quality of public expenditures. These reforms should help reduce public 
debt  gradually  when  economic  conditions  allow  by  setting  consistent  targets  and  prioritising 
high-quality expenditure. 

The fight against unemployment is tackled by the French authorities both by implementing 
emergency  measures  during  the  crisis  but  also  supporting  the  recovery  with  a  strong 
component  dedicated  to  employment  in  the  Plan  (component  8).  The  approach  focuses  on 
youth  with  measures  on  apprenticeship,  training,  skills,  and  active  labour  market  policies. 
Associated  reforms,  such  as  the  reform  of  unemployment  benefits,  which  includes  measures 
aiming at  addressing the challenge of labour market  segmentation, are likely to  bring a lasting 
positive  impact.  Several  inclusion  measures  are  also  presented  in  the  plan:  support  to  persons 
with  disabilities,  youth,  elderly care, and digital  inclusion as well as support to  education. The 
plan also contains several measures relating to territories and regions, especially in the domains 
of digital, health and mobility. 

Boost the growth potential in a sustainable manner  

The French recovery and resilience plan is expected to address several important barriers 
to growth and investment. Based on the European Investment Bank investment surveys28, the 
three  main  impediments  to  investment  are  labour  market  regulations,  business  regulations  and 
skills  mismatches.  Concerning  labour  market,  the  recovery  and  resilience  Plan  will  continue 
implementing  a  major  reform  of  the  unemployment  benefits,  strengthening  incentives  for 
employment  and  providing  more  legal  stability  to  employers,  among  others.  On  business 
regulations,  several  reforms  targeting  administrative  complexity  will  take  place  under  the 
Facility  such  the  ASAP  law  (‘Accélération  et  simplification  de  l'action  publique’),  the  4D  law 
(decentralisation, differentiation, deconcentration, decomplexification) and the transformation of 
public action. The high level of regulatory restrictiveness in the services sectors is however not 
addressed. The issue of skills mismatches is addressed through ambitious investments, notably in 
digital skills, vocational training, and youth employment. 

In general,  the recovery and resilience plan can be expected to have a positive impact on 
productivity  and  competitiveness  of  the  country  with  large  investments  in  favour  of 
technologies  of  the  future  (green  and  digital  transitions).  Productivity  may  increase  by 
addressing  two  of  the  main  weaknesses  of  France  in  the  domain:  low  skills  of  the  workforce 
(investments  in  skills  in  the  component  8)  and  low  adoption  of  ICT  technologies  by  firms 

28 https://www.eib.org/en/publications/econ-eibis-2020-france. 

46 

 
 
                                                           
(digitalisation  of  SMEs  in  the  component  7,  investments  in  key  digital  technologies  in  the 
component  6).  The  orientation  of  support  toward  businesses  and  R&D  is  expected  to  foster 
growth  and  employment  during  the  recovery  but  also  in  the  long  term,  beyond  the  Facility’s 
timeframe. In conclusion, the French recovery and resilience plan may boost growth potential in 
a sustainable manner. 

The  seven  flagship  areas  identified  in  the  2021  Annual  Sustainable  Growth  Strategy  are 
largely  addressed  by  the  French  plan.  The  hydrogen-related  measures  in  component  4 
contribute to the flagship area Power up, while component 1 as well as some measures related to 
the  energy  renovation  of  health  buildings  in  component  9  address  the  Renovate  flagship,  and 
component 3 contributes to the Recharge and refuel flagship. Components 7 and 9 address the 
Modernise  flagship  (digitalisation of public services and health system)  while the plan ‘France 
Très Haut Débit’ (component 9) tackles the Connect area. The Scale-up flagship is supported by 
sizeable investments in R&D for key digital technologies (component 6). Finally, component 8 
includes  measures  (digital  skills,  vocational  training,  and  lifelong  learning)  in  line  with  the 
flagship Reskill and upskill. 

Conclusion  

Overall, the plan constitutes a comprehensive package of reforms and investments directed 
at addressing the challenges identified in the country-specific recommendations, with a few 
gaps that are partially tackled via measures outside the Facility. The plan addresses well the 
recommendations  and  challenges  in  the  areas  of  business  environment,  employment,  health, 
green and digital transitions. The plan includes a commitment to strengthen the sustainability of 
public finances when economic conditions allow and reforms to support that goal. However, the 
commitment to resume discussions on the reform of the pension system is not accompanied by 
milestones and target for the implementation of the reform. In addition, further measures may be 
required  to  address  the  labour  market  challenges  faced  by  vulnerable  groups  other  than  young 
people  (CSR  2019.2).  There  are  also  gaps  regarding  investment  in  renewables  and  developing 
electricity interconnections, which are not fully covered by the recovery and resilience plan but 
for which action is underway outside the framework of the Facility. The plan does not include 
measures to reduce regulatory restrictions in services (CSR 2019.4.2 and 2020.4.1), in particular 
on regulated professions and in the retail sector, which would have complemented competition-
enhancing  measures  introduced  in  2019  concerning  driving  schools,  sales  of  automotive  parts, 
real  estate  management,  online  sale  of  medicine,  medical  analysis  labs,  and  fintechs.  The 
recovery  and  resilience  plan  includes  several  reforms  aiming  at  simplifying  administrative 
procedures. 

Taking  into  consideration  the  reforms  and  investments  envisaged  by  France,  its  recovery  and 
resilience  plan  is  expected  to  contribute  to  effectively  addressing  all  or  a  significant  subset  of 
challenges  identified  in  the  country-specific  recommendations,  or  challenges  in  other  relevant 
documents officially adopted by the Commission under the European Semester, and the recovery 
and  resilience  plan  represents  an  adequate  response  to  the  economic  and  social  situation  of 

47 

 
 
France. This would warrant a rating of A under the assessment criterion 2.2 in Annex V to the 
Recovery and Resilience Facility Regulation. 

48 

 
 
 
 
4.3. Growth  potential,  job  creation,  economic,  institutional  and  social  resilience, 
European  Pillar  of  Social  Rights,  mitigating  the  impact  of  the  crisis,  and  social 
territorial cohesion and convergence  

Fostering economic growth and jobs 

Around  50%  of  the  investments  put  forward  by  the  French  recovery  and  resilience  plan 
are  targeted  to  fostering  French  competitiveness  and  supporting  growth  (see  table  4). 
Support  to  research,  innovation  and  technology  is  key  to  strengthening  potential  growth  in  the 
medium  term  and  increasing  economic  resilience  to  shocks,  while  offering  new  employment 
opportunities.  Investments  to  strengthen  the  equity  base  of  SMEs  should  help  businesses 
continue to invest. 

Investments aimed at supporting research and innovation should ultimately imply a long-
lasting  positive  effect  on  net  exports,  potential  growth  and  domestic  employment. 
Investments  in  research  and  innovation,  such  as  quantum  computing,  green  technologies,  and 
cybersecurity, whereby France envisages to reinforce its strategic autonomy in line with the EU 
update  of  the  2020  new  industrial  strategy29,  are  expected  to  have  a  positive  effect  on 
technological  progress  and thus  on total  factor productivity.  Likewise, the expected innovation 
support for EUR 1.7 billion in aeronautics should enhance the resilience and the expansion of a 
flagship sector in France. Fostering innovation and diffusion of best practices among firms could 
also reduce the increasing gap between the most and least productive firms.  

The research programming law will strengthen public-private cooperation in research and 
foster  the  creation  and  development  of  businesses  from  academic  research.  The  2020 
Country  Report  highlighted  the  need  to  improve  the  links  between  public  research  and 
businesses  by  promoting  entrepreneurship  in  researchers’  careers.  EUR  25  billion  will  be 
invested over 2021-2030 for the benefit of research organisations, universities and other research 
and  innovation  actors,  thus  ensuring  predictability  and  sustainability  of  public  R&D  funding. 
Several  measures  aim  to  increase  the  attractiveness  of  the  research  profession.  Also,  the 
investments  earmarked  to  reinforce  the  education  system  in  the  areas  more  closely  linked  to 
technological  R&D,  investments  in  digital  equipment,  State  guarantees  on  student  loans  or  the 
support  to  training  ecosystems  via  the  Future  Investments  Programme  (PIA),  will  help  create 
favourable  conditions  for  research  and  innovation  in  key  technological  areas  in  the  future. 
However, although instrumental, the overall envelope of investments aimed at fostering research 
and  innovation  (around  EUR  8.5  billion,  including  an  increased  capacity  of  the  National 
Research Agency of EUR 428 million) will remain insufficient to attain the target of 3% of GDP.  

The  French  Plan  is  a  step  forward  compared  to  the  already  existing  ‘France  Très  Haut 
Débit’  plan  in  terms  of  improving  connectivity  throughout  the  territory  and  widening 
access  to  fast  fixed  and  mobile  networks.  Despite  the  large  coverage  of  French  households 

29 See European Commission, Updating the 2020 New Industrial Strategy, COM(2021) 350 final, 05.05.2021.  

49 

 
 
                                                           
with fixed broadband, digital connectivity remains low or of bad quality in rural areas and in the 
outermost regions. The level of digital intensity of French firms is lower than the EU average30. 
Regarding e-commerce, only a small share of around 15% of French SMEs sell online compared 
to  nearly  45%  of  large  companies.  Hence,  the  investments  aimed  at  deepening  the  integration 
and  absorption  of  digital  technologies  by  firms,  especially  SMEs,  are  key  to  improving  firms’ 
productivity and competitiveness. 

The  investments  aimed  at  enhancing  the  digital  skills  of  young  people  and  the  overall 
workforce have the potential to reduce the low uptake of information and communication 
technologies and overall technology adoption. According to the National Productivity Board, 
they  are  some  of  the  reasons  behind  the  relatively  weak  productivity  growth  in  France.  More 
broadly,  the  issue  of  low  skills  and  skills  mismatches  arising  in  France  are  addressed  by  the 
recovery  and  resilience  plan  via  measures  in  up-and  re-skilling  training  in  jobs  for  the  future, 
digital skills and youth employment. Measures providing hiring subsidies and access to training 
are likely to foster the labour market integration of (young) unemployed and to improve workers’ 
mobility on the labour market, subsequently boosting jobs and growth potential. In addition, the 
reform of the public employment services will reinforce the adequacy of guidance offered to job-
seekers.  A  number  of  education  measures  are  also  likely  to  contribute  to  growth  potential  and 
especially through youth labour market integration by fostering access to tertiary and vocational 
education. These measures have the potential to contribute to the implementation of Chapter I of 
the European Pillar of Social Rights.  

The  law  for  the  acceleration  and  simplification  of  public  action  (‘ASAP’)  contains  some 
measures  that  simplify  the  regulatory  environment,  as  outlined  below.  The  ASAP  law 
foresees that industrial and construction projects will remain subject to the regulations in force at 
the time the project application is submitted, even if those regulations were to change during the 
examination period. It also provides for a simplification of the rules applicable to the online sale 
of  medicines  by  pharmacists.  Another  section  of  the  ASAP  law  is  dedicated  to  simplifying 
administrative procedures, for example by streamlining consultative commissions. These reforms 
could  simplify  some  administrative  procedures  for  businesses.  Nevertheless,  the  plan  does  not 
propose  reforms  to  reduce  regulatory  restrictions  in  services,  a  sector  with  low  productivity 
growth that could benefit from a reduced level of regulatory barriers. 

In sum, the investments and reforms in the recovery and resilience plan, including in green, 
research,  innovation  and  digitalisation  projects,  are  set  to  bring  about  an  immediate 
positive  effect  on  GDP  growth.  Moreover,  beyond  their  short-term  effects  on  growth  derived 
from  higher investment  expenditure, the measures in  the plan in  the  areas of digitalisation and 
research  and  innovation  are  expected  to  entail  positive  effects  on  total  factor  and  labour 
productivity and thus on overall potential growth. In turn, the sizeable investments envisaged for 

30 24% in France compared to 26% in the EU on average (European Commission Country Report France 2020). 

50 

 
 
                                                           
green  projects  are  set  to  imply  an  immediate  impact  on  GDP  growth,  with  also  potentially 
positive  effects  on  potential  growth.  Higher  potential  growth  is  expected  to  also  be  translated 
into  an  improvement  in  French  competitiveness  via  a  higher  contribution  of  net  exports  to 
growth.  However,  the  macroeconomic  impact  of  the  investments  included  in  the  recovery  and 
resilience plan is expected to be moderate (an increase in GDP of 0.66 pp at its peak in 2021). 
Some reforms could be expected to have an additional impact although difficult to quantify. The 
cut in production taxes enshrined in “France Relance” (not funded by the plan) complements the 
measures in the plan aimed to ameliorate the competitiveness of French firms. 

Box 2. Stylised Next Generation EU impact simulations with QUEST – France 

Model simulations conducted by the Commission using the QUEST model show that the 
economic impact of the Next Generation EU in France could lead to an increase of GDP 
of between 0.6% and 1.0% by 2024.[1] After 20 years, GDP could be 0.2% higher. Spill-
overs account for a large part of such impact.  
According to these simulations, this would translate into up to 157 000 additional jobs. Cross 
border  (GDP)  spill-overs  account  for  0.4  pps  in  2024,  showing  the  value  added  of 
synchronised  expenditure  across  Member  States  (line  2).  Even  assuming  that  half  of  the 
expenditure is not productive still leads to a significant impact. (line 3).[2] 

Table 1: QUEST simulation results (deviation of real GDP level from non-Next Generation 
EU case, linear disbursement assumption over 4 years) 
Scenario 

2021  2022  2023  2024  2025  2026  2027  2028  2029  2030  2040 

Baseline 

   of which spill-over 

Low productivity 

0.6 

0.4 

0.4 

0.9 

0.4 

0.6 

1.0 

0.4 

0.6 

1.0 

0.4 

0.6 

0.8 

0.4 

0.4 

0.5 

0.3 

0.2 

0.5 

0.2 

0.2 

0.5 

0.2 

0.2 

0.4 

0.1 

0.2 

0.4 

0.1 

0.2 

0.2 

0.0 

0.1 

This stylised scenario does not include the possible positive impact of structural reforms, 
which  can  be  substantial.  A  model-based  benchmarking  exercise  shows  that  undertaking 
structural  reforms  that  would  result  in  halving  the  gap  vis-à-vis  best  performers  in  terms  of 
indicators of structural reforms could raise France’s GDP by 12% in 20 years time, in line with 
findings for the EU average. [3] 
Due  to  the  differences  in  the  assumptions  and  methodology  (including  about  spill-overs, 
reforms  and the types of spending),  the results of this stylised assessment  cannot  be directly 
compared to the numbers reported in chapter 4 of France’s RRP.  

[1]  RRF  amounts  to  roughly  90%  of  NGEU,  which  also  includes  ReactEU,  Horizon,  InvestEU,  JTF,  Rural 
Development and RescEU. 
[2] Technically, the low productivity scenario considers a significantly reduced output elasticity of public capital. 
[3] Varga, J, in 't Veld J. (2014), “The potential growth impact of structural reforms in the EU: a benchmarking 
exercise ", European Economy Economic Papers no. 541.  
http://ec.europa.eu/economy_finance/publications/economic_paper/2014/pdf/ecp541_en.pdf. 

Strengthening social cohesion 

51 

 
 
  
  
  
 
 
The  recovery  and  resilience  plan  submitted  by  France  includes  measures  aiming  at 
addressing  social  and  employment  challenges,  identified  in  previous  country  reports, 
country specific recommendations and monitored through the Social Scoreboard (see Box 
3).  These  measures  are  likely  to  have  a  medium  impact  with  regards  to  the  strengthening  of 
social  cohesion  and  social  protection  system,  including  through  policies  for  the  youth,  by 
reducing  social  vulnerabilities,  contributing  to  the  implementation  of  the  principles  of  the 
European Pillar of Social  Rights  in  these  areas and contributing to  improving the levels  of the 
indicators of its Social Scoreboard.  

To address increasing risks of exposure to poverty or social exclusion in the context of the 
COVID-19 crisis, the French plan dedicates financial support to workers whose activity has 
been negatively affected by the crisis through access to training and adequate employment 
guidance. Access  to  up-and re-skilling will also  be improved through the implementation  of a 
digitalisation  strategy,  and  additional  investments  will  be  implemented  to  support  digital 
inclusion and the improvement of the population’s basic digital skills. The plan is also expected 
to address the challenge of energy poverty for tenants of social housing through investments in 
infrastructure. 

The  plan  will  invest  in  measures  aimed  at  improving  the  inclusiveness  of  education  and 
therefore access to higher education and the labour market integration of the youth. Such 
measures include investments in  favour of early school  leaving prevention, academic  guidance 
and support. The plan will also target young people in initial education through hiring subsidies 
for  apprentices  and  the  creation  of  additional  places  in  the  tertiary  and  vocational  education 
system. Labour market integration of students will also be improved through measures aiming at 
improving the coordination between universities and the business environment. The plan is also 
expected  to  address  the  challenge  of  the  labour  market  integration  of  young  people  neither  in 
employment nor in education or training through targeted employment and social guidance and 
hiring  subsidies  for  young  people,  including  through  work-study  programmes.  A  limited  focus 
will  be  given  to  young  people  living  in  urban  deprived  neighbourhoods,  through  reinforced 
financial support in subsidised contracts. 

More broadly, jobseekers are also supported by  a time-limited reinforcement of the main 
public  employment  service,  Pôle  Emploi.  An  increase  in  resources  enhances  its  capacity  to 
cope with the impact of the economic crisis on the number of jobseekers while it implements its 
new strategy, including the new diagnostic and guidance methodology, and the expansion of the 
combined  employment  and  social  guidance  planned  in  the  context  of  the  national  strategy  to 
prevent and fight poverty.  

Overall support specifically targeted at vulnerable groups other than young people is low 
compared  to  other  investment  areas  of  the  plan.  This  holds  inter  alia  for  people  with  a 
migrant  background,  especially  women,  low-work  intensity  and  single-parent  households, 
children  and  atypical  workers,  particularly  affected  by  the  crisis.  A  notable  exception  are 
investments  in  favour  of  persons  with  disabilities  and  elderly  people.  Significant  investments 
will  be  made  in  healthcare,  long-term  care  and  their  digital  transformation.  Projects  to 
support better integration of healthcare and cooperation between hospitals and outpatient care, as 

52 

 
 
well  as  to  reinforce  community  health  centres,  will  strengthen  cohesion  and  access  to  care, 
including in  underserved regions  including the outermost regions.  Investment in  digital  service 
infrastructure,  the  interoperability  and  security  of  software,  in  equipment  and  the  roll-out  of 
nation-wide  eHealth  services  –  including  namely  the  electronic  health  record  (dossier  médical 
partagé)  and  the  electronic  health  data  space  (espace  numérique  de  santé)  –  can  improve 
resilience,  accessibility  and  efficiency  of  care.  The  French  recovery  and  resilience  plan  is  also 
expected to strengthen suicide prevention by the creation of a national suicide prevention number 
and  a  corresponding  messenger  service.  Significant  investment  is  furthermore  planned  for  the 
modernisation of French long-term care (mainly elderly homes) and hospital infrastructure, but 
their  effect  on  social  and  territorial  cohesion  will  depend  on  the  conditions  and  geographical 
location of the projects. Reducing vulnerability and increasing resilience 

Investment  measures  in  the  recovery  and  resilience  plan,  in  particular  in  the  areas  of 
digitalisation  and  research  and  innovation  are  expected  to  entail  positive  effects  on  total 
factor and labour productivity and thus on overall potential growth. They should translate 
into  an  improvement  in  French  competitiveness  via  a  higher  contribution  of  net  exports  to 
growth.    In  this  regard,  the  French  plan  addresses  directly  one  the  main  vulnerabilities  and 
imbalances of the French economy, namely low competitiveness in a context of low productivity 
growth.  

The reform of the public finance governance framework and the quality of public spending 
should enhance the resilience of the French economy by allowing a wider fiscal space. The 
reduction of public expenditure and debt would provide France with a wider fiscal space to adopt 
countercyclical policies to offset eventual negative shocks on activity and employment. This is 
key to enhancing the resilience of the French economy.  

The  French  recovery  and  resilience  plan  contains  many  measures  aiming  to  improve  the 
resilience  of  several  economic  and  social  structures  and  institutions.  The  industrial  sector 
benefits  from  dedicated  measures  that  will  prepare  it  to  the  climate  and  digital  transitions, 
helping it to fit in the economy of the future. The COVID-19 crisis and the disruption of global 
value chains unveiled weaknesses of the global economy and a risk of dependence on crucial raw 
materials,  components  or  equipment  in  the  EU.  The  French  government  set  industrial 
sovereignty  and  resilience  as  priorities  of  action.  Several  measures  of  the  plan,  such  as 
significant  investments  in  innovation,  green  and  digital  transitions,  should  help  businesses 
acquire a higher degree of autonomy concerning processes, energy, raw materials, value chains, 
and expertise. 

The  healthcare  system,  whose  limits  have  been  tested  by  the  COVID-19  pandemic,  also 
benefits from significant resilience-enhancing measures. The plan devotes EUR 6 billion on 
investment  in  modernisation  (including  digitalisation  and  infrastructures)  and  reforms.  Elderly 
care also benefits from important reforms and investments. 

In  the  area  of  employment,  the  main  public  employment  service,  ‘Pôle  Emploi’,  will  be 
reinforced through the temporary recruitment of additional counsellors and an associated 
reform of its service offer (component 8).  It  should  help  mitigate the impact  of the crisis  on 

53 

 
 
employment and reinforce the structure in the longer term. In coherence with this investment and 
reform,  the  unemployment  benefits  reform  will  introduce  new  eligibility  rules  and  a  new 
calculation methodology which is likely to improve the resilience of the system in time of crisis. 
In addition, the reform of the short time work scheme has the potential to improve the resilience 
of the French labour market, by helping firms adjust quickly to a changing economic context. 

In  the  area  of  education  and  training,  investments  will  finance  digital  equipment  in  the 
secondary and tertiary education system (component 7). Investments are also planned in the 
digitalisation  of  the  training  offer  and  material  for  unemployed  persons  (component  8),  which 
will ensure pedagogical continuity in hybrid and/or digital forms in times of crisis. 

Public research institutions will be reinforced in the long term with the 2021-2030 research 
programming  law.  It  aims  at  enhancing  public  funding  for  research  and  innovation, 
strengthening public-private linkages and boosting the attractiveness of public research careers. 
It  targets  annual  spending  on  research  and  development  of  3%  of  GDP  by  2030,  including  a 
public  expenditure  target  of  1%  of  GDP.  The  national  research  agency  is  also  refinanced  to 
increase  its  project  funding  capacity,  which  should  allow  the  French  research  ecosystem  to  be 
better positioned to tackle the challenges of the future. 

Support  to  the  cultural  and  creative  sectors,  strongly  affected  by  the  crisis,  will  preserve 
employment and develop economic resilience. 

Finally, several governance institutions will be reformed to improve their resilience and agility. 
In particular, the plan proposes a decentralisation effort (giving more power to local communities 
and decentralised administrations) via the 4D law and a reform of the public service. 

Cohesion and convergence 

Cohesion is well addressed in the French  recovery and resilience plan since it constitutes, 
with  green  transition  and  competitiveness,  the  third  priority  of  the  recovery  plan.  The 
cohesion  part  is  made  of  components  8  and  9,  dedicated  to  employment,  education,  youth, 
vocational training, research, health, digital connectivity and support to territories including rural 
areas. 

The plan aims to strengthen territorial cohesion through investments in digital connectivity 
and digital inclusion measures. The plan also provides for investments in the green transition 
and  energy  renovation  throughout  the  territory,  including  through  investment  support  for  local 
and  regional  authorities.  The  same  applies  to  investments  in  transport  (rail,  daily  mobility). 
Investment  in  health  infrastructure  and  institutions  is  also  spread  throughout  the  territory.  The 
plan  includes  investments  for  the  renovation  of  hospitals  and  long-term  care  institutions.  The 
ongoing  reform  of  the  healthcare  system  is  adapted  to  the  needs  revealed  by  the  COVID-19 
crisis.  A reform of care for the elderly and independent living is under preparation. 

These  investments  will  be  accompanied  by  reforms  at  territorial  level.  The  4D  draft  law 
(decentralisation,  de-concentration,  differentiation,  de-complexification)  seeks,  inter  alia,  to 
transfer  additional  powers  from  the  State  to  territorial  communities  in  some  policy  areas 

54 

 
 
(ecological transition, transport, housing, social cohesion and health), with specific competencies 
to  be  transferred  on  a  voluntary  basis,  i.e.  differentiated  by  territorial  community.  By  “de-
complexifying”,  the  draft  law  also  seeks  to  consolidate  crisis  management  measures,  with 
streamlined  decision  making  to  increase  the  resilience  of  public  policy.  The  “right  to 
differentiation” concerns a draft constitutional law that would similarly transfer powers to local 
territories, for  example in  roads or water management, upon the request  and initiative of those 
territories.  

Conclusion  

Taking  into  consideration  all  reforms  and  investments  envisaged  by  France,  its  recovery  and 
resilience  plan  is  expected  to  have  a  high  impact  on  strengthening  the  growth  potential,  job 
creation,  and  economic,  social  and  institutional  resilience  of  France,  on  contributing  to  the 
implementation  of  the  European  Pillar  of  Social  Rights,  including  through  the  promotion  of 
policies for children and youth, and on mitigating the economic and social impact of the COVID-
19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within 
the Union. This would warrant a rating of A under the assessment criterion 2.3 in Annex V to the 
Recovery and Resilience Facility Regulation. 

55 

 
 
 
 
Box 3.  Employment and social challenges in light of the Social Scoreboard accompanying the 
European Pillar of Social Rights. 

The  Social  Scoreboard  supporting  the  European  Pillar  of 
Social Rights points to a comparatively good performance of 
France overall, while some employment and social challenges 
persist.  The  COVID-19  crisis  put  an  end  to  the  overall 
improvement  in  labour  market  conditions  observed  since  2016. 
The unemployment rate rose from below 8% at the onset of the 
pandemic to 8.7% in Q3 of 2020. The significant measures taken 
by  the  French  government,  and  in  particular  the  long-term  and 
short-term partial unemployment schemes, effectively supported 
workers and firms affected by the crisis. In-work poverty is low, 
but  labour  market  segmentation  persists.  The  risk  of  poverty  or 
social exclusion (AROPE) and income inequalities (S80/S20) are 
below the EU average. However, vulnerable groups remain at a 
disadvantage  in  the  labour  market  and  face  greater  social  risks, 
amplified in the context of the crisis. 

The  employment  situation  of  young  people  and  vulnerable 
groups  is  a  challenge.  Already  prior  to  the  crisis,  in  2019,  the 
unemployment  rate  was  high  for  the  youth  (19.5%  vs.  15%  for 
the EU) and vulnerable groups such as non-EU born (18.2% vs. 
14.9%  for 
the  EU).  The  COVID-19  crisis  risks  further 
aggravating these challenges, with the youth unemployment rate 
already  increased  to  20.2%  (16.8%  in  the  EU)  and  the  rate  of 
NEETs  at  11.4%  (11.1%  in  the  EU)  in  2020.  These  challenges 
combine  with  skills  mismatches  and  high  inequalities  in  the 
education system. The labour market is highly segmented with a 
high share of workers on temporary contracts (15.3% vs 13.6% EU), particularly hit by the crisis, and one of the 
lowest levels of transitions from temporary to permanent contracts in the EU (12.0% in 2019).  

The level of poverty remains below the EU average, but the crisis may fuel the slow increase observed over 
the past years (from 17% in 2017 to 17.9% in 2019, against the general EU trend). Similarly, material and social 
deprivation continued to rise (13.1%) and was above the EU average (12.4%). In the context of the crisis, poverty 
is of particular concern, in particular for vulnerable groups including the youth, low skilled, non-EU born, single-
parent households and people on temporary contracts. Severe housing deprivation of tenants is high (9% vs. 6.3% 
for the EU). 

The French plan includes significant  investments to address the challenge of labour  market integration of 
young people through targeted hiring incentives, including for apprenticeship contracts, and reinforced guidance 
provided by the public employment service, which also benefits more broadly all unemployed. It is also addressing 
the challenge upfront through early school leaving prevention measures and the creation of additional places in the 
tertiary  and  vocational  education  system.  Besides  the  youth,  the  plan  has  a  more  limited  targeting  on  other 
vulnerable groups or deprived areas and adresses to a limited extent the impact of socio-economic inequalities on 
the educational outcomes of pupils. 

The plan also foresees significant investments in health and long-term care. Besides improving the systems’ 
resilience, effectiveness and efficiency, they also have the potential to further strengthen access to care. 

56 

 
 
 
  
Workers affected by the COVID-19 crisis are being provided with up- and re skilling opportunities in line 
with current and future skills needs, fostering their mobility on the labour market in the long term, particularly 
in  the  perspective  of  the  twin-transition  and  contributing  to  addressing  the  challenge  of  skills  mismatches.  The 
training  offer  is  however  less  accessible  to  atypical  workers,  particularly  affected  by  the  crisis,  and  there  is  no 
specific targeting on the low qualified, who tend to have a lower access to the training offer. 

The  exposure  to  social  risks  of  some  vulnerable  groups  is  not  directly  addressed  in  the  plan,  nor  is  its 
potential impact on child poverty. This concerns the low-skilled, people with a migrant background (particularly 
women)  and  single  parent  households,  workers  on  temporary  contracts  and  atypical  workers.  The  challenge  of 
access to affordable housing in the context of an above-average level of severe housing deprivation is not directly 
addressed either. 

4.4. The principle of ‘do no significant harm’ 

France’s  recovery  and  resilience  plan  includes  a  systematic  assessment  of  each  measure 
against the principle of ‘do no significant harm’ (DNSH), for each of the six environmental 
objectives  within  the  meaning  of  Article  17  of  the  Taxonomy  Regulation.  While  France’s 
assessment often stresses the environmental and climate benefits of measures in this assessment, 
especially  as  regards  the  ‘green’  components  1  to  4,  it  also  provides  information  allowing  to 
assess that measures will comply with the ‘do no significant harm’ principle – for instance by 
providing  reassurance  that  the  implementation  of  the  existing  EU  and  French  legislative 
framework will prevent any significant harm, or by indicating that any measure that could have 
had  a  significant  impact  has  been  carved  out  from  funding  under  the  Recovery  and  Resilience 
Facility.  For  instance,  for  the  ‘Support  to  demand  for  clean  vehicles’  measure  (component  3), 
France  justifies  compliance  with  the  ‘do  no  significant  harm’  principle  by  indicating  that  the 
‘ecological  bonus’  for  light-duty  vehicles  is  only  available  for  the  purchase  of  an  electric, 
hydrogen  or  plug-in  hybrid  vehicle  with  CO2  emissions  below  or  equal  to  50  g/km.  To  justify 
that the ‘Forests’ measure (component 2) complies with the ‘do no significant harm’ principle, 
France’s assessment makes reference to the commitment to integrate biodiversity-related criteria 
in forest management plans by 202131.  

For some measures where calls for projects or calls for interest are still necessary to select 
specific  projects  in  the  future,  ensuring  adherence  with  the  ‘do  no  significant  harm’ 
principle  will  require  introducing  specific  safeguards,  in  particular  in  the  milestones 
associated with  each measure, to  monitor the  implementation of the measures.  This  is  the 
case, for instance, for ‘programmatic’ measures such as calls for projects to promote innovation, 
which  will  be  organised  in  the  context  of  the  fourth  ‘Programme  d’Investissements  d’Avenir’ 
(PIA4). Four investment measures are mentioned in the Plan, in component 4 (‘Innovate for the 
green  transition’),  component  6  (‘Innovating  for  the  resilience  of  our  business  models’  and 

31 As part of the ‘roadmap on the adaptation of forests to climate change’ and of the ‘commitment charter between 
the State and stakeholders of the forest and wood sectors’ adopted in December 2020. 

57 

 
 
 
                                                           
‘Supporting innovative businesses’), and component 9 (‘Support teaching, research, development 
and  innovation  ecosystems’).  These  measures  typically  rely  on  the  adoption  of  framework 
strategies  (‘acceleration  strategies’)  to  define  a  tailored  set  of  calls  for  projects  or  calls  for 
interest,  to  mobilise  private  and  public  investors  to  engage  in  innovation  actions  in  the  most 
suitable  way  in  relation  to  each  specific  ‘acceleration  strategy’.  In  this  context,  keeping  the 
appropriate  flexibility  for  the  definition  of  these strategies  implies  that  it  is  not  yet  possible  to 
know  in  detail  the  technical  contents  of  these  measures,  and  as  a  result  to  guarantee  that 
measures will comply with the ‘do no significant harm’ principle. 

To  address  this  situation,  provisions  and  milestones  associated  to  these  measures  provide 
that appropriate criteria will need to be introduced in the terms of reference of the calls for 
projects  or  calls  for  interest,  when  they  are  developed  following  the  adoption  of  the 
‘acceleration strategy’. The terms of reference will ensure that all projects selected under these 
calls comply with the ‘do no significant harm’ principle, by preventing activities that could do 
significant harm to environmental objectives (e.g. activities related to fossil fuels, waste landfills 
and incinerators) from being selected as part of the calls. 

Similar  safeguards  will  need  to  be  built  into  the  provisions  and  milestones  for  other 
measures,  including  the  support  scheme  for  the  aeronautics  sector.  Both  sub-measures 
proposed (support to R&D, and an investment support fund) will rely on calls for projects. While 
these  measures  can  support  the  green  transition  of  the  aeronautics  sector,  they  need  to  be 
appropriately framed to avoid supporting conventional aircrafts based on fossil fuels. To ensure 
that  the  sub-measure  ‘investment  support  fund  to  promote  companies’  diversification, 
modernisation,  and  digital  and  environmental  transformation’  complies  with  the  ‘do  no 
significant  harm’  principle,  aircraft  operators  (in  particular  airports  and  airlines)  will  be 
explicitly excluded from the calls for projects under this sub-measure. In addition, future terms 
of reference for upcoming calls for projects under both sub-measures will also need to include as 
an eligibility criterion that selected measures shall contribute to the green transition. 

Safeguards  have  also  been  introduced  for  measures  included  in  the  Plan  that  could 
potentially  lead  to  investments  being  made  in  installations  falling  within  the  scope  of  the 
EU  Emission  Trading  System  (ETS).  This  is  the  case  in  particular  for  the  measure  on  the 
‘decarbonisation of industry’ in component 2, but also for abovementioned innovation measures 
in the framework of the PIA4. To comply with the ‘do no significant harm’ principle, the terms 
of reference for upcoming calls for projects  for these measures need to  ensure that greenhouse 
gas  emissions  following  the  investment  end  up  below  the  relevant  benchmark32  for  free 

32 Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the 
relevant  benchmarks  an  explanation  of  the  reasons  why  this  is  not  possible  should  be  provided.  Benchmarks 
established  for  free  allocation  for  activities  and  installations  falling  within  the  scope  of  the  Emissions  Trading 
System, as set out in the Commission Implementing Regulation (EU) 2021/447. 

58 

 
 
                                                           
allocation  relevant  to  the  activity  concerned.  To  that  end,  it  has  been  necessary  to  reflect  this 
requirement in the relevant provisions and milestones. 

Conclusion  

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  no  measure  for  the 
implementation of reforms and investments projects included in France’s recovery and resilience 
plan is expected to do significant harm to environmental objectives within the meaning of Article 
17  of  Regulation  (EU)  No  2020/852  (the  principle  of  ‘do  no  significant  harm’).  This  would 
warrant  a  rating  of  A  under  the  assessment  criterion  2.4  in  Annex  V  to  the  Recovery  and 
Resilience Facility Regulation. 

4.5. Green transition  

Climate target  

The  recovery  and  resilience  plan  mostly  follows  the  methodology  for  climate  tracking  in 
accordance  with  Annex  VI  to  the  Regulation,  by  identifying  intervention  fields  and 
corresponding coefficients for the calculation of support to climate change objectives. The 
table  in  Annex  5.1  presents  the  detailed  application  of  the  climate  tracking  methodology.  It 
should be noted that: 
 

the  proposed  reform  measures  do  not  have  any  associated  cost  within  the  plan.  In  this 
context, the plan does not identify intervention fields for them, and they do not contribute to 
reaching the climate target. 
the measures of the plan often consist of several  sub-measures – for most measures where 
that is the case, the plan indicates an intervention field for each sub-measure, and provides a 
weighted  average  of  contribution  to  the  climate  target  for  the  whole  measure,  which 
corresponds to the appropriate methodology.  
in  some  cases  where  such  a  breakdown  was  not  provided,  where  the  intervention  field 
remained unspecified or insufficiently justified, leading to an overestimation of the climate 
contribution,  the  Commission  had  to  attribute  a  different  intervention  field,  applying  a 
conservative approach in case of uncertainty. The assessment below reflects this approach.  
the plan does not propose any increased climate coefficients for any measure. 

 

 

 

Overall,  the  recovery  and  resilience  plan  contributes  to  climate  objectives  for  46.0%  of 
France’s allocation of EUR 39.4 billion, and as such, the climate target of 37% is met with a 
significant margin. 

Some  measures  with  large  amounts  make  a  particularly  significant  contribution  to  the 
climate target: 

  Energy renovation measures for public buildings (EUR 3.8 billion as part of component 1) 
make  a  very  significant  contribution  to  the  objective  by  being  tracked  with  a  100% 
coefficient due to the high energy performance of these renovations (achieving, on average, 
at  least  a  medium-depth  level  renovation  as  defined  in  Commission  Recommendation  on 

59 

 
 
 
Building Renovation (EU) 2019/786,  through  a  gain in  primary  energy  demand of at  least 
30%,  and  as  such  qualifying  for  intervention  field  025bis).  Other  building  renovation 
measures  are  sometimes  tracked  with  a  100%  climate  coefficient  (renovations  of  private 
buildings  and  social  housing  as  part  of  component  1)  due  to  their  high  expected  energy 
performance,  and  sometimes  with  a  40%  climate  coefficient  (part  of  the  measures  in 
component  9  on  the  renovation  of  health-related  buildings  and  residential  homes  for  older 
people  that  correspond  to  building  renovation  works  and  not  to  small  investments)  where 
energy efficiency is not the main objective of the measure.  

  The railway measure in component 3 (the biggest measure of the Plan at EUR 4.39 billion) 
is very largely tracked with a climate coefficient of 100%. Intervention field 068 applies to 
two sub-measures consisting in  reconstructing or modernising railways  that  are part of the 
‘TEN-T comprehensive network’, resulting in a 100% coefficient for a total amount of EUR 
3.55 billion. Sub-measures that relate to other railways (more local railways that the TEN-T 
comprehensive  network)  contribute  with  a  climate  coefficient  of  40%  under  intervention 
field 069. Finally, the sub-measure on the development of alternatives to glyphosate for the 
cleaning of tracks does have a positive environmental effect, but does not contribute to the 
climate objective. 

  Still  in  component  3,  measures  relating  to  the  shift  to  clean  vehicles  (support  to  clean 
vehicles demand, and greening of the State car fleet, for a cumulated amount of EUR 1.14 
billion)  have  been  tracked  with  a  100%  climate  coefficient  as  regards  electric  light-duty 
vehicles, and a 40% coefficient as regards plug-in hybrid vehicles33. Where information on 
the repartition between various types of vehicles was not available, such measures have been 
tracked with a 40% coefficient.  

  The decarbonised hydrogen measure in component 4 has been tracked with a 100% climate 
coefficient for a significant amount of EUR 1.925 billion, as it promotes the production and 
use of hydrogen produced from renewable sources or low-carbon hydrogen produced from 
the electricity grid.  

  The support scheme for the aeronautics sector in component 4 (total amount of EUR 1.486 
billion)  has  only  been  tracked  with  a  100%  climate  coefficient  for  the  part  of  the  R&D 
support  sub-measure  that  corresponds  to  direct  support  to  low-carbon  aircraft  (i.e.  70%  of 
the  sub-measure’s  EUR  1.37  billion),  as  only  this  part  qualifies  for  intervention  field  022 
(‘Research  and  innovation  processes,  technology  transfer  and  cooperation  between 

33 The ‘Methodology for climate tracking’ annexed to the Recovery and Resilience Facility Regulation does not set 
out intervention fields that would allow for climate or environmental tracking of electric vehicles or plug-in hybrid 
vehicles, except for vehicles for urban transport falling under intervention field 074. According to Article 18(4)(e) 
of  the  Regulation,  the  methodology  should  however  ‘be  used  accordingly  for  measures  that  cannot  be  directly 
assigned to an intervention field listed in Annex VI’. In this context, the Commission has applied a 100% climate 
contribution  coefficient  for  zero-emission  vehicles  of  all  categories  (this  includes  battery  electric  and  fuel 
cell/hydrogen-powered vehicles); a 40% climate contribution coefficient for plug-in hybrid light-duty vehicles; and, 
in line with the criteria under the Taxonomy Regulation, a 100% climate coefficient for low-emission heavy-duty 
vehicles. 

60 

 
 
                                                           
enterprises  focusing  on  the  low  carbon  economy,  resilience  and  adaptation  to  climate 
change’).  The  aeronautics  modernisation  fund  has  been  tracked  with  a  0%  climate 
coefficient, absent a justification on the precise breakdown of the fund’s expenses between 
green and other projects.  

  Finally,  for  the  ‘green  innovation’  measure  as  part  of  the  ‘Programme  d’Investissements 
d’Avenir’  (PIA4)  in  component  4  (for  a  total  amount  of  EUR  1.7  billion),  the  climate 
contribution  remains  significant  but  was  recalculated  to  take  into  account  the  specific 
expected contribution of each of the seven planned ‘acceleration strategies’.  
It  should  also  be  noted  that  in  component  2,  the  EUR  140  million  sub-measure  on  the 
incorporation of recycled materials could not be tagged with a 100% climate coefficient, in 
the  absence  of  a  justification  that  this  sub-measure  complied  with  the  efficiency  criterion 
mentioned in the Regulation to justify eligibility for intervention field 045bis. 

 

Green transition  

The recovery and resilience plan puts a significant focus on the green transition, with four 
components  (components  1-4)  dedicated  to  environmental  and  climate  action,  for  a  total 
contribution from the Facility of EUR 20.2 billion. The proposed actions are in line with the 
context  of  the  European  Green  Deal,  and  put  in  perspective  both  the  environmental  and 
economic  benefits  of  the  green  transition  to  foster  recovery  and  resilience.  The  Plan  addresses 
many significant challenges France is facing as regards the green transition (cf. Section 2.3.1). 

On the reform side, the  recovery and resilience plan puts forward the proposed ‘Climate 
and  Resilience  Law’  as  a  key  upcoming  reform  to  underpin  the  green  transition.  This 
proposed  law  follows  up  from  a  wide-ranging  consultation  associating  150  randomly-selected 
citizens, with the aim of contributing to the greenhouse gas emissions reduction target for 2030. 
This  law  is  of  critical  importance  to  advance  France’s  climate  and  environmental  objectives. 
According to the impact assessment study34, the Law should secure achievement of between half 
and  two-third  of  the  way  to  be  covered  between  in  2019  and  the  target  for  2030  in  terms  of 
greenhouse gas emissions reduction, thanks to a reduction estimated between 56 and 74 million 
tonnes  of  CO2  equivalent.  In  addition  to  this  structuring  Law,  the  revision  of  the  thermal 
regulation  of  new  buildings  (RE2020)  will  make  a  significant  contribution  to  the  French  2030 
target.  The  plan  also  mentions  France’s  new  ‘green  budgeting’  system  as  a  useful  reform  to 
increase transparency on how public spending contributes to the green transition. 

Climate and energy 

34 Cf. impact assessment study (in French): https://www.legifrance.gouv.fr/contenu/Media/Files/autour-de-la-
loi/legislatif-et-reglementaire/etude.  

61 

 
 
                                                           
A significant part of the investments proposed in the recovery and resilience plan focus on 
the climate and energy transition. They  aim to  contribute to  France’s 2030 targets  and to  its 
transition to climate neutrality by 2050. The proposed measures of the plan follow up on and are 
consistent with the orientations outlined in France’s National Energy and Climate Plan (NECP), 
although  they  focus  prominently  on  certain  challenges,  in  particular  on  energy  efficiency  of 
buildings  and  sustainable  mobility,  thus  addressing  the  two  biggest  greenhouse  gas  emitting 
sectors – transport and buildings – with a dedicated component each (components 3 and 1). By 
contrast, the development of renewable energy production, which is also a significant element of 
the NECP, appears modestly in the measures of the plan, while renewable energy consumption 
will  be  boosted  by  a  number  of  measures,  for  instance  dedicated  to  hydrogen,  transport  or 
decarbonisation  of  industry,  making  the  parallel  development  of  additional  renewable  capacity 
even  more  crucial.  The  third  biggest  emitting  sector,  agriculture,  also  benefits  from  some 
investments, but to a lesser extent (one measure in component 2 and R&D as part of component 
4’s ‘Programme d’Investissements d’Avenir’ measure). 

The recovery and resilience plan dedicates a full component (component 1) to the  energy 
renovation of buildings, contributing to tackling associated challenges with a broad, cross-
cutting  approach.  Measures  cover  all  types  of  buildings,  with  a  prominent  amount  for  public 
buildings  (for  a  total  recovery  and  resilience  facility  funding  of  EUR  3.8  billion),  but  also 
significant  actions  for  the  renovation  of  the  private  building  stock,  of  social  housing,  and  to 
increase  the  energy  efficiency  of  SMEs.  These  actions  generally  follow  up  on  actions  already 
undertaken  by  France  through  previous  policy  instruments,  thus  accompanying  an  increase  in 
scope  and  scale  of  the  renovation  effort,  also  with  the  aim  of  developing  a  wider  professional 
know-how to underpin renovations at a larger scale.  The component also contains a significant 
reform  on  the  thermic  regulation  of  new  buildings  (RE2020),  which  is  considered  key  to 
enshrine  good  practices  in  the  domain.  However,  some  actions  (such  as  addressing  ‘thermal 
sieves’  to  fight  energy  poverty,  and  promoting  in-depth  renovation),  while  present  in  the  plan, 
will need to  be further scaled up in  the future35. Actions  to  promote energy  efficiency are also 
complemented by measures aiming to reduce industrial greenhouse gas emissions thanks to more 
energy  efficient  industrial  processes  (notably  through  electrification)  and  investments  in 
renewable heat, transport, as well as R&D on green technologies (respectively in components 2, 
3 and 4). 

The  recovery  and  resilience  plan  does  not  contain  direct  support  measures  to  promote 
renewable  energy  deployment,  but  lays  the  ground  for  ambitious  action  to  develop  a 
decarbonised hydrogen value chain, which will increase renewable energy demand. France, 
which is set to miss its 2020 renewables target, likely by at least 5 percentage points, indicates 
that  policies  to  develop  renewable  energy  are  organised  through  other  means  than  the  plan, 

35  Castellazzi,  L.,  Zangheri,  P.,  Paci,  D.,  Economidou,  M.,  Labanca,  N.,  Ribeiro  Serrenho,  T.,  Zancanella,  P.  and 
Broc,  J.,  Assessment  of  second  long-term  renovation  strategies  under  the  Energy  Efficiency  Directive,  2019, 
JRC114200, JRC114200. https://publications.jrc.ec.europa.eu/repository/handle/JRC114200 

62 

 
 
                                                           
including  via  green  bonds  (‘OAT  vertes’).  Only  some  measures  include  renewable  energy 
aspects  as  a  secondary  point,  notably  actions  to  promote  the  integration  of  renewable  energy 
generation through building renovation (component 1), and some administrative simplifications 
in the context of the ASAP law (component 5). On the other hand, France’s plan includes a full-
fledged  measure  to  promote  the  development  of  decarbonised  hydrogen  (component  4),  partly 
based  on  renewable  electricity,  and  partly  based  on  electricity  from  the  grid.  Following  up  on 
France’s  2020  Hydrogen  Strategy,  and  largely  in  line  with  the  Commission’s  own  2020 
Hydrogen Strategy, this measure includes taking part in planned Important Projects of Common 
European interest (IPCEI), to support research and first industrial deployment for the hydrogen 
value chain. It also includes setting up a new support scheme based on operating aid to promote 
the generation of decarbonised hydrogen. This and the electrification measures planned for road 
transport  (component  3)  and  industrial  decarbonisation  (component  2)  reinforce  the  need  for 
parallel development of matching renewable energy generation capacity. 

The  recovery  and  resilience  plan  includes  some  actions  to  develop  energy  infrastructures 
(component  3),  notably  by  reinforcing  the  resilience  of  electric  distribution  networks  in  rural 
areas  and  developing  charging  stations  for  electric  vehicles,  which  is  welcome,  although  with 
little  specificity  as  regards  detailed  targets.  The  plan  does  not,  however,  contain  measures  to 
improve cross-border electricity interconnections – France indicates that projects to that end are 
underway  outside  of  the  context  of  the  Recovery  and  Resilience  Facility,  in  particular  with 
Ireland and Spain.  

The recovery and resilience plan aims to promote sustainable mobility through a range of 
investments,  covering  various  means  of  transport  in  a  comprehensive  way.  Component  3 
features  actions  to  address  the  main  challenges  of  the  sustainable  mobility  transition,  by 
promoting the development of infrastructures across cleaner transportation modes (rail transport, 
charging stations, reserved lanes for low-emission road transport, waterways), as well as through 
actions to accelerate the electrification of road transport and to incentivise the purchase of zero- 
and low-emissions vehicles through bonuses. The key action in this component (and the biggest 
of the whole Plan at EUR 4.39 billion) is the railway measure, including a EUR 4.05 billion plan 
to support investments to modernise the railway network, through the recapitalisation of SNCF 
Réseau, the railway infrastructure manager in  France. Component 4 also contains a measure to 
promote the transition of aeronautics towards lower-emission aircrafts by dedicating EUR 1.37 
billion to R&D in the sector. Finally, the plan mentions the mobility law, which has reformed the 
transport sector to support its shift towards climate objectives. 

The  recovery  and  resilience  plan  aims  to  increase  resilience  towards  climate  change. 
Component 2 includes several measures of adaptation to the negative impact of climate change, 
for  instance  measures  adapting  and  improving  the  resilience  of  vulnerable  forest  stands  to  the 
impact of climate change, measures to reduce vulnerability in areas impacted by natural disaster 
(e.g.  risk  prevention  and  disaster  resilience  in  overseas  areas).  Investments  in  clean  water  and 
sewage  networks  also  contribute  to  the  preservation  of  water  resources  and  prevent  scarcity 
during drought periods. 

63 

 
 
The  recovery  and  resilience  plan  does  not  include  measures  to  remove  harmful  fuel 
subsidies  or  increase  environmental  taxation.  Such  measures  require  a  careful  design  to 
address consequences on all groups in society, and ensure social fairness, but, if designed well, 
they  can significantly support a  fair and inclusive  green transition.  In  general,  the measures of 
the  plan  do  not  address  specifically  the  social  fairness  aspects  of  the  climate  and  energy 
transition (although component 1 does include measures to support energy renovations for poorer 
households and in social housing, contributing to eradicating energy poverty). 

Environmental policies 

The  recovery  and  resilience  plan  contains  useful  actions  to  accelerate  the  transition 
towards  a  circular  economy,  by  increasing  available  funding  to  invest  in  waste  sorting 
centres  and  recycling  infrastructures  (component  2).  This  should  support  France  in 
implementing  its  national  circular  economy  roadmap  and  in  reaching  its  waste  management 
objectives. Other measures will support the plastics value chain to foster a reduction in single-
use plastics and the integration of recycled plastics into new products. 

The  recovery  and  resilience  plan  includes  dedicated  measures  to  support  biodiversity 
protection  and  restoration,  within  component  2,  addressing  various  aspects  of  biodiversity 
policies  through  a  range  of  actions  on  water  and  ecological  continuity  in  rivers,  as  well  as 
enhancing  protected  areas.  The  plan  is  also  expected  to  contribute  (component  2)  to  the  fight 
against  artificial  conversion  of  soil,  with  measures  dedicated  to  the  reduction  of  the 
environmental  impact  of  urbanisation  (through  densification  of  housing  in  tensed  urban  areas) 
and  to  the  reconversion  of  brownfields.  Indirectly,  such  measures  also  support  biodiversity 
conservation, knowing that in France only 28% of the species of community interest and 22% of 
the habitat types of community interest are in favourable conservation status. Component 2 also 
features measures related to sustainable management of forests in order to maintain carbon sinks, 
timber  resources  and  other  environmental  services  provided  by  forests  –  in  the  context  of  this 
measure, France has mentioned the commitment to integrate biodiversity-related criteria in legal 
forest  management  plans  by  2021.In  the  field  of  agriculture,  the  development  of  the  national 
production  of  vegetable  proteins  aims  to  contribute  to  the  fight  against  global  warming  by 
developing  a  national  supply  source  of  vegetable  plant  proteins  for  animal  and  human 
consumption,  thus  making  it  possible  to  reduce  the  imports  of  proteins  and  contributing  to  the 
fight against imported deforestation. 

The  recovery  and  resilience  plan’s  measures  will  indirectly  contribute  to  improving  air 
quality,  although  no  measures  are  specifically  dedicated  to  this  objective.  France  needs  to 
improve  the  situation  on  air  quality,  especially  in  larger  agglomerations  and  in  the  context  of 
court cases. However, the plan should essentially contribute to improving the situation indirectly, 
mostly through actions to shift mobility away from fossil-based transport modes (component 3), 
and  by  investing  in  industrial  decarbonisation  and  buildings  renovation  (components  2  and  1 
respectively). 

Lasting impact  

64 

 
 
Most measures described in the recovery and resilience plan are expected to have a lasting 
impact  towards  the  green  transition.  They  will  contribute  to  concrete  action  to  renovate 
buildings, progressing on the necessary action to improve the energy efficiency of the bulk of the 
existing building stock, between now and 2050. They will also support the development of long-
lasting  energy  and  transport  infrastructure,  which  will  underpin  the  deployment  of  renewable 
energy as well as low-emission mobility in the coming decades. Finally, a number of actions are 
forward-looking  R&D  actions  (Programme  d’Investissements  d’Avenir,  development  of 
hydrogen) with a potential to support longer-term evolutions necessary to achieve the transition 
to  climate  neutrality.  On  the  other  hand,  some  measures,  such  as  the  renewal  of  the  State’s 
vehicle fleet, while supporting to a certain extent the market uptake of clean vehicles, will have a 
more limited long-term impact.  

Conclusion 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  the  recovery  and 
resilience  plan  is  expected,  to  a  large  extent,  to  make  a  significant  contribution  to  the  green 
transition or to address the challenges resulting from it and ensures that at least 37% of its total 
allocation contribute to the climate target. This would warrant a rating of A under the assessment 
criterion 2.5 in Annex V to the Recovery and Resilience Facility Regulation. 

4.6. Digital transition  

The recovery and resilience plan mostly follows the methodology for digital tracking set out 
in  Annex  VII  to  the  Regulation,  by  identifying  intervention  fields  and  corresponding 
coefficients  for  the  calculation  of  support  to  the  digital  objectives,  for  each  investment 
measure.  The  table  in  Annex  5.1  presents  the  detailed  application  of  the  digital  tagging 
methodology. It should be noted that: 

  The proposed reform measures do not have any associated cost within the recovery and 
resilience plan. In this context, the Plan does not identify intervention fields for them, and 
they do not contribute to reaching the digital target. 

  The measures of the Plan often consist of several sub-measures – for measures where that 
is the case, the Plan indicates an intervention field for each sub-measure and provides a 
weighted average of contribution to the digital target for the whole measure.  

  Where the intervention field remained unspecified or insufficiently justified, leading to an 
overestimation  of  the  digital  contribution,  the  Commission  had  to  attribute  a  different 
intervention  field,  applying  a  conservative  approach  in  case  of  uncertainty.  The 
assessment  below  reflects  this  approach.  In  particular,  the  Commission  applied  a 
correction  on  several  youth  employment  measures  where  sufficient  justification  as  to 
their  digital  contribution  was  lacking  (intervention  field  099).  The  contribution  of  the 
investment  in  the  aeronautics  sector  was  also  revised  downwards  due  to  the  lack  of 
justification provided for the “modernisation” sub-measure. 

  The plan does not propose any increased digital coefficients for any measure in case of 

linked reform. 

65 

 
 
 
Overall, the recovery and resilience plan contributes to digital objectives for 21.32% (EUR 
8.4 billion) of France’s allocation of EUR 39.4 billion, and as such, the digital target of 20 
% is considered to be met. 

Some measures make a significant contribution to the digital target: 

The  digitalisation  of  health  (component  9),  the  support  to  innovation  in  the  Programme 
d’Investissements  d’Avenir  (component  6),  and  the  digitalisation  of  the  State  and  territories 
(component 7) account for more than half (EUR 4.3 billion) of the overall digital contribution of 
the French plan and are all tagged 100% digital. 

  The  digitalisation  of  health  (component  9)  aims  at  accelerating  the  development  of 
digital  tools  in  the  health  sector.  It  consists  of  four  sub-measures.  (i)  State  digital 
infrastructure in the field of health shall accelerate the deployment of State information 
systems:  the  shared  medical  record,  the  digital  health  platform,  one-stop  shop  for  all 
digital services for healthcare professionals, electronic identification cards for healthcare 
professionals.  (ii)  Interoperability  and  safety  of  the  software  used  by  the  public  and 
private  healthcare  sectors  aims  at  upgrading  the  existing  software  already  used  in  the 
public and private sector to make them compatible with the interoperability and security 
requirements imposed by the State. (iii) Support to the deployment of software and their 
integration  with  existing  systems  and  support  for  healthcare  professionals  and  users  to 
enhance  the  take-up  of  new  solutions.  (iv)  The  digital  catch-up  of  the  long-term  care 
sector  aims  at  equipping  long-term  care  facilities  with  digital  infrastructure  such  as 
internet connections, computers and software. 

  The support to innovation in the Programme d’Investissements d’Avenir (component 6) 
“Innovating  for  the  resilience  of  our  business  models”  has  the  objective  of  supporting 
investment  for  the  development  of  key  digital  technologies.  It  shall  finance,  more 
specifically,  projects  falling  under  six  strategies:  (1)  development  of  quantum 
technologies,  (2)  cybersecurity,  (3)  education  technologies,  (4)  cultural  and  creative 
industries, (5) 5G and future telecommunications technology, and (6) cloud. 

  The  digitalisation  of  the  State  and  territories  (component  7)  shall  identify  digital 
innovative approaches allowing for an improvement of the efficiency of the public action 
and the quality of the working environment of public officials, including for e-mobility. 
To  this  end,  a  “Public  Agent  Digital  Backpack”  Fund  for  projects  shall  modernise  the 
workstation  of  State.  The  funded  projects  shall  fall  under  five  themes:  increased 
performance  of  data  transport  networks;  development  of  federated  digital  identification 
for  State  officials,  of  secure  remote  access  solutions  to  digital  tools;  of  unified 
communication solutions at the interministerial level and support for the appropriation by 
managers and teams of digital working methods. In addition, an “Innovation and digital 
transformation  Fund"  will  support  high-impact  digital  initiatives  within  the  State  and 
local authorities, while supporting the digital sector. The funded projects shall fall under 
eight  themes:  quality  dematerialisation  of  the  administrative  procedures  most  used  by 
citizens and businesses; new natively digital public policies; development of best digital 
practices born in  local State services;  professionalise public digital  sectors; develop  the 
use of data in the service of public action; study and experiment with the use of emerging 

66 

 
 
digital  technologies  and  approaches;  digital  transformation  of  local  authorities;  support 
structuring projects mobilising multiple transformation levers. 

Digital transition 

Actions to support the digital transition are present in several components of the recovery 
and resilience plan, each responding to the digital challenges of the specific sector or area 
covered by the component.  The recovery and resilience plan dedicates components 6 to 9 to 
the  digital  transition,  contributing  to  tackling  associated  challenges  with  a  broad,  cross-cutting 
approach.  Measures  cover  fundamental  research,  innovation,  deployment  of  new  technologies, 
digitalisation  of  the  State,  of  the  territories,  of  SMEs,  schools  and  universities,  investments  to 
increase  cybersecurity,  increase  digital  skills  of  the  labour  force,  and  improve  digital 
connectivity,  electronic  identity  and  eHealth.  The  digital  investments  have  the  potential  to 
contribute  to  the  attainment  of  the  Digital  Decade  targets  and  the  digital  government 
commitments  under  the  Berlin  Declaration  on  Digital  Society  and  Value-based  Digital 
Government.  Investments  are  also  consistent  with  the  EU  cybersecurity  strategy,  with  funding 
for automated solutions to detect cyber-attacks. 

Connectivity 

Investments in connectivity are crucial to ensure that all citizens can access basic services 
online and benefit from an enriched, accessible and secure digital space, preventing social 
exclusion. The Plan includes an investment to boost connectivity in rural areas with an allocation 
of  EUR  240  million  (component  9).  This  sum  contributes  to  a  larger  effort  to  improve 
connectivity under the ‘France Très Haut Débit’ plan, supported by national funds to the tune of 
EUR 3.3 billion. The objective set in the recovery and resilience plan is to reach 100% Fibre-to-
the-Home  (FTTH)  coverage  by  2025  on  the  basis  of  the  State  aid  decision  THD36.  This 
investment has the potential to contribute significantly to the digital transformation of economic 
and  social  sectors,  as  it  is  expected  to  appropriately  address  existing  shortcomings  in  terms  of 
current  total  fibre-to-the-home  coverage.  Fast  broadband  (Next  Generation  Access)  coverage 
reached 69% in 2020, improving by 7 percentage points, but it still remains well below the EU 
average of 87%. 

Investments in connectivity are also foreseen for the implementation of 5G and new networks of 
communication strategy adopted in February 2021 (component 6). This strategy aims to develop 
French  solutions  around  telecommunications  networks,  for  technological  sovereignty  and  to 
achieve end-to-end control of these solutions (sovereignty over exploitation) through support for 
supply, R&D and training. The measures planned have the potential to contribute to the targets 
set by the Digital Decade Communication, aiming at having all European households covered by 
a Gigabit network and all populated areas covered by 5G, by 2030. 

36 Decision C(2016) 7005 final, 7.11.2016, State aid SA.37183 (2015/NN)  – France  Plan France Très Haut Débit, 
OJ C 68, 3.3.2017. 

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Digital-related investment in R&D 

Investments foreseen in digital R&D are expected to address structural shortages, increase 
the overall level of investment and simplify provisions for cooperation between public and 
private  sector  researchers.  The  recovery  and  resilience  plan  foresees  support  to  R&D 
investment  in  digital  areas,  increasing  the  budget  for  R&D  projects  via  the  National  Research 
Agency  and  supporting  the  preservation  of  employment  in  private  research.  This  action  is 
estimated  to  contribute  to  the  digital  objective,  as  from  the  past  records  more  than  40%  of 
projects  selected  through  competitive  calls  concerned  digital  areas,  from  fundamental  research 
on  algorithms,  to  the  use  of  digital  technologies  (e.g.  sensors  and  modelling)  to  fight  climate 
change. 

Human Capital 

The recovery and resilience plan includes significant investment to support education and 
employment,  including  specific  interventions  for  digital  skills  development.  The  latter  will 
support  the  implementation  of  a  comprehensive  strategy  for  the  digitalisation  of  education,  in 
particular  for  primary  and  secondary  schooling,  including  an  enhanced  use  of  platforms  and 
digital technologies for pedagogical purposes (component 7). The digitalisation of the Ministry 
of National Education has the potential to contribute to the resilience of the organisation of the 
compulsory  education  system  and  better  administrative  exchanges  within  the  education 
community.  In  addition,  EUR  304  million  will  be  devoted  to  the  digitalisation  of  training 
platforms for life-long learning. These measures have the potential to improve the resilience of 
the  education  and  training  systems,  when  matched  with  appropriate  training  for  teaching  staff 
and with measures to ensure that all students can take part to the new learning environment. 

Specific investment is  dedicated to digital inclusion, with  the aim to provide citizens with 
basic digital skills, necessary to have access to online public services, thereby contributing 
to  preventing  social  exclusion.  In  addition,  the  recovery  and  resilience  plan  includes  a 
complementary  allocation  to  the  individual  learning  accounts  for  training  25  000  people  in 
digital  skills  or  digital  professions.  Finally,  a  dedicated  action  aims  at  supporting  the 
development  of  digital  education  ecosystems  (component  9)  at  all  levels  of  education,  from 
primary school to universities, encouraging the development of structural partnerships between 
educational  and  research  institutions  and  businesses.  These  partnerships  can  be  particularly 
relevant if implemented in the digital area because they offer students the possibility to use state-
of-the art technologies in their training and ensure that the school curricula are in line with the 
rapidly  changing  demands  of  the  labour  market.  This  action  has  the  potential  to  improve  the 
education  offer  and  to  facilitate  technology  transfer,  thus  contributing  to  increasing  the 
international attractiveness of French educational institutions. 

Budget  allocated to  these measures will be complemented by national  resources, as part of the 
“France Relance” plan.  Measures to improve skills, in particular digital ones, can contribute to 
addressing  France’s  structural  issues  related  to  the  persistent  lack  of  digital  skills  among  the 
French  population  and  contribute  to  reaching  the  Digital  Decade  target  of  80%  of  EU  citizens 
with  basic  digital  skills  by  2030  and  20  million  information  and  communication  technologies 
specialists.  

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E-government, digital public services and local digital ecosystems, eHealth 

The recovery and resilience plan dedicates several  investments to the digitalisation of the 
State  and  of  the  territories  (component  7).  The  health  crisis  has  demonstrated  the  need  to 
accelerate the digital transformation of the public service: employee workstations that meet the 
challenges of performance and safety, collaborative and nomadic tools, dematerialisation of State 
services to offer all French people, whether they are agents or administrators, simpler and more 
efficient online services. These investments will also support e-Identity (eID) deployment, with 
the objective of delivering up to 12.5 million national digital identity cards in 2023. In addition, 
it will support the development of an application interacting with electronic title chips to allow 
online authentication for the holder. A budget of EUR 136 million is devoted to cybersecurity, to 
strengthen public services whose disruption would have a strong detrimental impact on citizens. 
It  also  supports  innovation  competitions  to  develop  an  efficient  and  competitive  cybersecurity 
offer  and  local  centres  able  to  respond  to  cybersecurity  challenges.  These  investments  address 
the  current  challenges  related  to  the  delivery  of  cross-border  e-Identity  services,  for  which 
France scores below the EU average and at the same time will improve the overall security of the 
digital  services.  These  investments,  when  accompanied  by  measures  to  strengthen  the  user-
centric approach, are expected to have a lasting impact.  

Significant  investments  (component  9)  in  eHealth  will  support  the  national  digital  health 
services  infrastructure  and  project  management.  They  will  also  cover  software  updates  to 
interoperability standards, upgrades or new software, the integration, transformation and sharing 
of data. These measures underpin the introduction and establishment of two flagship projects of 
digital health in France: the health record and the  electronic health data space. These measures 
will have an impact in terms of promoting better exchange and access to different types of health 
data, such as  electronic  health records,  genomics data,  and data from patient registries. This is 
particularly useful not only to support healthcare delivery, but also for health research and health 
policy-making  purposes.  This  investment  will  also  contribute  to  increasing  the  share  of 
healthcare  prevention  expenditure,  which  has  traditionally  been  among  the  lowest  in  the  EU 
(1.86% in France in 2017 compared with 3.1% in the EU). 

Digitalisation of businesses 

Concerning the digitalisation of businesses (component 7), the recovery and resilience plan 
builds  on  existing  initiatives  such  as  ‘France  Num’,  with  the  objective  of  increasing  the 
digitalisation  of  200  000  SMEs  by  2024  while  providing  employees  with  the  necessary 
support to manage the transition to digital technologies. Despite progress accomplished over 
the  past  years,  the  percentage  of  companies  having  high  levels  of  digital  intensity  in  France 
(13.4%) remains  below the EU average (15.4%)  (DESI 2021 figures). These measures address 
this  challenge  by  strengthening  the  support  to  SMEs  willing  to  digitalise,  through  local  and 
personalised support. In the implementation phase, concrete support to SMEs will be needed in 
terms  of  advisory  and  access  to  digital  infrastructure  (such  as  cybersecurity,  cloud  computing 
and data infrastructure). Organisations such as the Digital Innovation Hubs can help to achieve a 
sustainable and successful digital transformation.  Investments in industrial SMEs and mid-caps 
through  upscaling  and  supporting  their  medium  and  long-term  digitalisation  strategy  with  the 

69 

 
 
adoption  of  new  technologies  (virtual  reality,  robotics,  numerically  controlled  production 
machines, artificial intelligence) have the potential to boost productivity over the long term. 

Investment in digital capacities and deployment of advanced technologies 

The recovery and resilience plan supports a number of actions for the deployment of key 
digital  capacities,  mainly  through  the  Programme  d’Investissements  d’Avenir  (component 
6).  The  areas  targeted  include  cybersecurity,  5G,  quantum,  as  well  as  digital  education  and 
cultural and creative sectors. In particular, EUR 350 million will be devoted to implementing the 
cybersecurity strategy, launched by the French government on 18th February 2021. This strategy 
aims  at  strengthening  the  State’s  digital  security  and  safety,  as  well  as  to  help  businesses  and 
citizens  increase  their  cyber-awareness  and  ensure  that  they  can  benefit  from  a  secure  digital 
environment. Investments planned in the recovery and resilience plan aim at increasing by more 
than three times the turnover of the cybersecurity value chain, doubling the number of employees 
in the sector and supporting the emergence of three unicorns by 2025. The investment in the area 
of  quantum  computing  will  focus  on  the  development  of  the  first  prototype  of  quantum 
computer, training 6600 doctors, masters, engineers and technicians and ensuring France’s self-
sufficiency in its supply of resources to the development of quantum technologies. Investments 
in  key  digital  capacities  will  strengthen  French  technological  sovereignty  and  resilience  in 
strategic  domains,  they  are  in  line  with  the  commitment  taken  by  France  in  different  EU 
initiatives.  

Green transition and ICT 

The Plan includes investment to use digital technologies in support of the transition to the 
green economy in key markets. Resources will be dedicated among others to the digitalisation 
of  the  mobility  sector,  the  roll-out  of  sustainable  farming  systems  and  the  decarbonisation  of 
industry. In addition, the roadmap published in February 2021 includes a number of existing and 
new measures, such as the establishment of an environmental barometer for digital actors or the 
support for artificial intelligence projects for ecology. These measures are in line with the EU’s 
ambition to achieve a successful green and digital transition and are key to ensuring a sustainable 
recovery. 

Planned Important Projects of Common European interest (IPCEI) 

The  French  recovery  and  resilience  plan  mentions  France’s  participation  to  two  planned 
digital Important Projects of Common European interest: one on next generation cloud and 
edge  computing,  for  which  France  is  co-coordinator, and  the  other  on  microelectronics  and 
communication 
d’Investissements 
d’Avenir’. These  are  expected  to  contribute  to  increasing  Europe's  digital  leadership  in  future 
data processing and communication technologies, including electronic components and systems, 
and  next  generation  cloud  and  edge  services  and  infrastructures,  based  on  core  EU  values  and 
rules,  and  making  the  most  of  the  interoperability  solutions  and  frameworks.  This  will  also 

both co-funded via 

technologies, 

‘Programme 

the 

70 

 
 
 
 
reducing 

supply 
contribute to 
chains, from innovative  industrial  research to  the  first  industrial  deployment  of  advanced 
technologies, infrastructure and services. 

dependencies along 

complex, 

strategic 

global 

Conclusion 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  the  recovery  and 
resilience  plan  is  expected,  to  a  large  extent,  to  make  a  significant  contribution  to  the  digital 
transition or to address the challenges resulting from it and ensures that at least 20% of its total 
allocation  contribute  to  support  digital  objectives.  This  would  warrant  a  rating  of  A  under  the 
assessment criterion 2.6 in Annex V to the Recovery and Resilience Facility Regulation. 

4.7. Lasting impact of the plan  

According to the French authorities, the impact of the investments included in the EUR 40 
billion  of  the  recovery  and  resilience  plan  would  support  activity  to  the  extent  of  0.7 
percentage  points  of  GDP  at  its  peak  in  2021,  without  taking  into  account  the  potential 
additional impact of structural reforms. In the environmental realm, the plan is also expected 
to reduce greenhouse gas emissions by 60 million tonnes. These estimates should be seen in the 
context  of  the  broader  France  Relance  plan.  Over  the  period  2020-2025,  the  EUR  100  billion 
plan “France Relance” is estimated to lead to a GDP increase of around 4 percentage points of 
GDP, also including the spillovers from the recovery and resilience plans of other EU Member 
States. In the long term, the plan is expected to raise GDP by 0.9 p.p. compared with a scenario 
without the plan. This effect would be mainly due to the cut in production taxes, investment in 
infrastructures, and measures aimed to bolster the skills of the labour force, the digital transition 
and  the  innovation  system,  with  a  positive  impact  on  long-term  productivity  and  labour  force 
employability.  Beyond  strengthening  competitiveness,  the  investments  in  the  plan  are  also 
expected  to  strengthen  social  and  institutional  resilience,  especially  of  the  healthcare  system. 
Likewise,  by  fostering  employment  in  areas  linked  to  R&D,  the  plan  is  also  deemed  to 
strengthen the capacity for innovation.  

The  implementation  of  investments  and  reforms  planned  by  France  in  its  recovery  and 
resilience plan is expected to bring about structural changes in a number of areas and to 
have  a  significantly  positive  impact  on  the  economic,  social  and  institutional  resilience  of 
the country. The envisaged investment in technologies, innovation (green technologies, digital, 
health), skills and in the digital transition embedded in the plan are meant to entail a beneficial 
and long-lasting effect on productivity and therefore on potential growth of the French economy. 
In particular, they are expected to  enhance the resilience and productivity of SMEs, while also 
providing accurate incentives for innovative firms.  

The  measures  aimed  to  increase  employability,  particularly  of  youth,  will  also  carry  a 
positive effect on potential growth in the long-term, mainly through the labour component. 

71 

 
 
 
The plan encompasses large-scale investments in skills and the integration of young people into 
the  labour  market.  This  youth  employment  policy  is  both  significant  in  its  scope  and  likely  to 
have a lasting impact through its expected effects on employment and social inclusion. Measures 
to  promote  youth  employment  and  training,  including  those  furthest  away  from  employment, 
should facilitate the labour market integration of young people and counteract the structural rise 
in unemployment. Vocational training policies are also undergoing significant structural changes, 
following  reforms  undertaken  since  2018.  Resources  devoted  to  upskilling  the  workforce  are 
considerably  increased,  notably  through  the  coupling  of  short-time  work  schemes  with 
vocational  training  and  geared  towards  the  green  and  digital  transition.  Training  schemes 
conditional on state support for short-time work schemes aims to upskill 170 500 employees. A 
major effort is also planned to digitalise vocational training and strengthen the support capacity 
of  Public  Employment  Services  (Pôle  Emploi  and  France  Competences).  Finally,  the 
unemployment benefit system reform is expected to strengthen incentives to work for employees 
and  to  discourage  the  excessive  use  of  very  short-term  contracts  by  employers  that  are 
detrimental to labour productivity.  

With  the  recovery  and  resilience  plan,  France  is  reaching  a  turning  point  in  its  digital 
development  policy.  While  France  had  already  invested  in  improving  connectivity  throughout 
the territory (‘France Très Haut Débit’ plan), the French plan will provide the means to continue 
and  expand  this  objective,  thereby  increasing  coverage  and  widening  access  to  fast  fixed  and 
mobile networks. Beyond that, large-scale public investments are planned for improving skills, 
including digital ones, not only of young people, but also of the overall workforce. Investments 
will also foster the digitalisation of public services, administrations and businesses, as well as the 
digitalisation  of  healthcare,  vocational  training,  education  and  culture.  The  increased  focus  on 
the development and deployment of key digital capacities, also via the implementation of multi-
country  projects,  is  expected  to  have  lasting  effects.  Widening  connectivity  though  the  length 
and breadth of the country, along with the measures devoted to social digital inclusion will also 
have  a  positive  lasting  impact  on  social  and  territorial  cohesion  provided  investments  are 
targeted to regions the most in need. This support to the digital transition is also deemed to bring 
about a positive, long-lasting effect on productivity and competitiveness. 

Green  transition  policies  contained  in  the  first  four  components  of  the  plan  should  put 
France  on  the  path  towards  a  substantial  and  sustainable  reduction  in  greenhouse  gas 
emissions  by  acting  mainly  on  two  of  the  most  emitting  sectors:  buildings  and  transport. 
The  massive  energy  efficiency  renovation  plan  for  buildings  encompassing  public  buildings, 
private and social housing as well as health facilities will make a substantial contribution to this 
objective. In turn, the development of efficient alternatives to road transport and the transition of 
the automotive sector to clean vehicles are also likely to have a lasting impact in contributing to 
the fight against climate change. Major investments in the hydrogen sector (be it in production or 
in  its  applications  in  transport,  industry  and  in  the  production  and  storage  of  decarbonised 
energy) are also  expected to  lead to  long-term emission  reductions. Beyond these investments, 

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the  climate  imperative  will  be  taken  into  account  within  public  spending  throughout  the 
budgetary procedure (green budgeting). So far, France is one of the very few countries to have 
introduced  an  innovative  approach  for  classifying  public  expenditure  according  to  their 
environmental  impact.  The  green  transition  is  also  supported  by  specific  reforms  (e.g.  Climate 
and Resilience Law, based on an extensive citizen consultation process, the thermal regulation of 
new buildings, Law on waste and circular economy, Mobility Law). 

The  resilience,  effectiveness  and  accessibility  of  the  health  sector  is  expected  to  be 
strengthened  through  the  implementation  of  the  national  reform  strategy  for  the 
healthcare  system,  investments  in  infrastructures  (investments  in  the  renovation  and 
modernisation  of  hospitals  and  long-term  care  institutions)  as  well  as  in  health  research 
and digital development. The plan provides support for the development of key health markets 
(digital health, biotechnologies, biomedical research, bio-production of innovative therapies) in 
order  to  develop  health  knowledge  and  improve  medical  practices.  A  particular  effort  is  being 
made to develop digital health and telemedicine (EUR 2 billion). Beyond health policy, a policy 
on  long  term  care  is  being  developed  with  the  creation  of  a  new  branch  of  social  security 
covering the risk of loss of autonomy in order to improve the provision of long-term care for the 
elderly and persons with disabilities both at home and in medical and social institutions. 

Investment  is  planned  to  support  the  transformation  of  higher  education  institutions.  As 
investment in higher education institutions has high spill over effects that prove beneficial to the 
economy and society as a whole, incentivising the transition of these institutions to excellence, 
increasing  the  diversification  of  resources  and  their  role  in  the  innovation  chain  should  have  a 
lasting impact. 

The  French  recovery  and  resilience  plan  will  support  technological  sovereignty  and 
competitiveness and ensure the resilience of the economy in the long term. It can be achieved 
by  prioritising  strategic  sectors  that  have  demonstrated  to  be  key,  particularly  in  the  current 
crisis, such as digital, health, education, cultural and creative industries.  This resilience will be 
ensured  by  more  investment  in  the  innovation  capacity  of  these  sectors,  from  the  research 
infrastructure to the deployment on the market.     

Institutional  changes  are  taking  place  in  the  civil  service  and  in  the  organisation  of  local 
and regional authorities, along with the modernisation and digitalisation of public services. 
The transformation of the public service reform aims at a better management of human resources 
promoting labour mobility, gender equality and encouraging the professional insertion of young 
people  and  those  with  disabilities.  In  addition,  the  plan  foresees  significant  investment  in 
digitalisation of central and local administrations, schools and health institutions. A further step 
is  being  taken  in  reforming  the  organisation  of  local  authorities  (Law  ‘4D:    décentralisation, 
différenciation,  déconcentration  &  décomplexification’).  At  territorial  level,  local  authorities 
wishing  to  do  so  will  adopt  contracts  for  recovery  and  environmental  development  with  the 
State, with concrete action plans and quantified and measurable targets in the areas of housing, 

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transport, green transition and health. The Recovery and Resilience Facility will also lead France 
to  engage  in  a  more  systematic  assessment  of  public  policies  through  performance  indicators 
monitored over time in order to measure the impact of investments. 

The proposed reforms in the areas of the public governance framework and the quality of 
public spending are expected to contribute  to enhancing the efficiency of public spending 
while putting public debt on a downward path. However, the extent to which these reforms 
can pose a useful contribution to debt reduction critically depends on the parameters defining the 
multiannual expenditure rule, which have not been detailed. If these reforms proved instrumental 
to  reinforcing  public  debt  sustainability  and  to  providing  more  fiscal  space  to  offset  negative 
shocks, they should also entail a positive impact on long-term growth.  

Conclusion 

Taking  into  consideration  all  reforms  and  investments  planned  by  France  in  its  recovery  and 
resilience  plan,  their  implementation  is  expected  to  bring  about  a  structural  change  in  relevant 
public  policies  and  to  have  a  positive  long-lasting  impact.  This  would  warrant  a  rating  of  A 
under  the  assessment  criterion  2.7  in  Annex  V  to  the  Recovery  and  Resilience  Facility 
Regulation. 

4.8. Milestones, targets, monitoring and implementation  

Adequacy  of  the  structure  tasked  with  the  implementation  of  the  plan,  monitoring  of  progress 
and reporting 

The  implementation,  monitoring  and  reporting  process  of  the  French  recovery  and 
resilience plan is ensured at the highest level of the French Government by the “Monitoring 
National  Committee”,  attached  to  and  chaired  by  the  Prime  Minister.  This  Committee  is 
composed of representatives of local  and regional  authorities, public administrations Directors, 
economists,  Members  of  Parliament,  as  well  as  social  partners  representatives.  Its  role  is  to 
ensure  a  swift  implementation  of  “France  Relance”  and  consequently  the  French  recovery  and 
resilience plan, which is a sub-part of it as far as investments are concerned. It met in October 
2020 to launch the monitoring exercise and again in February 2021 to take stock of the progress 
made. 

In  addition  to  the  high-level  political  steering  process,  the  implementation  of  France 
Relance  is  administratively  led  by  the  Ministry  of  Economy,  Finances  and  Recovery,  in 
close cooperation with the General Secretariat of European Affairs (SGAE) concerning the 
recovery  and  resilience  plan,  as  the  EU-funded  part  of  France  Relance.  The  General 
Secretariat of European Affairs is coordinating central administrations involved in the plan, and 
is  supported  in  the  implementation  and  monitoring  process  of  the  plan  by  the  “General 
Secretariat in charge of the Recovery Plan” (the “Recovery Secretariat”), specifically created for 

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the  purpose  of  France  Relance  and  directly  attached  to  the  Prime  Minister  and  the  Minister  of 
Economy, Finance and Recovery. The Recovery Secretariat is monitoring the implementation of 
the plan at the level of each measure, in close cooperation with regional prefects and Heads of 
each Ministry. 

In parallel with the monitoring carried out at national level, the regional and local prefects 
(i.e.  State  representatives  in  the  regions  and  “départements”)  are  in  charge  of  the 
territorial implementation, with the assistance of deputy-prefects specifically appointed to 
monitor the implementation of the national recovery plan. Regional monitoring committees, 
placed under the authority of the regional prefects, are integrated by decentralised State services 
at  regional  and  local  levels,  local  and  regional  authorities’  representatives  and  social  partners. 
Such committees have been set up in each region in order to monitor the progress of projects on 
the ground, and to identify and resolve any sticking point. They also have to report back on the 
implementation of each measure of the plan to the Recovery Secretariat on a monthly basis. 

Regarding the reforms presented in the recovery and resilience plan, their implementation 
is subject to specific monitoring by each Ministry concerned. Attached to each Minister, an 
advisor  is  specifically  responsible  for  monitoring,  implementing  and  reporting  on  the  reforms 
included in the recovery and resilience plan. The inter-ministerial coordination is ensured by the 
General Secretariat of European Affairs, which will be in charge of collecting, together with the 
Ministry  of  Economy,  Finance  and  Recovery,  the  supporting  documents  demonstrating  the 
achievement  of  the  milestones  of  the  reforms  planned  under  the  recovery  and  resilience  plan 
(adoption of laws, publication in the Official Journal, entry into force, adoption of implementing 
documents, reports). 

The  achievement  of  the  targets  and  milestones  related  to  investments  will  be  subject  to 
regular  and  centralised  monitoring  by  the  Recovery  Secretariat,  on  the  basis  of 
information  collected  and  reported  by  the  public  administrations  concerned.  A  “referent” 
has  been  appointed  for  each  measure  (defined  as  the  smallest  sub-investment  described  under 
each investment of each component) within the organisation responsible for its implementation 
(Directorate  of  a  Ministry,  public  operator  such  as  the  Environment  and  Energy  Agency 
(ADEME),  French  Biodiversity  Office  (OFB),  National  Housing  Agency  (Anah),  General 
Secretariat  for  Investment  (SGPI),  Bpifrance).  In  particular,  the  “referent”  will  provide 
information, generally on a monthly basis, on the progress of the indicators chosen as milestones 
and targets in a dedicated IT collection tool (Propilot), set up by the Recovery Secretariat. These 
data will be collected at local level and centralised at national level, and will be used to report on 
the achievement of milestones and targets under the recovery and resilience plan. The Recovery 
Secretariat will extract them from the IT tool “Propilot” and send them to the Budget Directorate 
of  the  Ministry  of  Economy,  Finance  and  Recovery  at  regular  intervals  in  order  to  finalise 
payment requests to be sent to the European Commission. 

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Responsibility for the implementation of the measures has been entrusted to each Ministry 
by the Ministry of Economy, Finance and Recovery by means of a management delegation 
agreement.  These  agreements  specify  that  each  Ministry  must  strictly  comply  with  reporting 
obligations, which implies that each Ministry sets out within its scope the internal control system 
defined by the Ministry of Economy, Finance and Recovery. Verification, inspection and audit 
missions will be organised to ensure the effectiveness of these systems and to control the quality 
of  the  data  transmitted,  following  the  validation  made  by  the  internal  budget  and  accountant 
controllers (CBCM). This process  will attest  the reality,  exhaustiveness,  correct  evaluation  and 
appropriate budgetary allocations and commitments of each payment request sent to the Ministry 
of Economy, Finance and Recovery. 

The  system  put  in  place  by  French  authorities  will  therefore  ensure  a  close  monitoring  of  the 
implementation of the recovery and resilience plan and a robust reporting on the achievements of 
milestones and targets to the Commission. 

Milestones, targets and indicators 

The  number  of  milestones  and  targets  as  well  as  their  overall  quality  are  deemed 
satisfactory.  The  French  recovery  and  resilience  plan  includes  a  set  of  175  milestones  and 
targets (reforms will be monitored by 33 milestones and 7 targets, investments by 36 milestones 
and 98 targets, and one milestone is included for control and audit procedures).  

Milestones and targets tracking the implementation of reforms are clear and realistic.  For 
reforms taking the form of a new legal act (law or implementing act), the milestone is the entry 
into force of the new piece of legislation, capturing the actual implementation of new provisions. 
Other  milestones  set  for  reforms  are  based  on  the  achievement  of  decisive  steps  in  the 
implementation  process,  such  as  the  setting  up  of  a  new  administrative  body  with  new 
competences and missions, the state of play of the first pilot experimentation, or the publication 
of  a  report  presenting  concrete  elements  for  a  new  policy  framework  in  a  given  field.  Such 
milestones  are  clear  and  realistic  as  they  reflect  decisive  steps  towards  the  complete 
implementation of a specific reform, which is captured by a final milestone or target. In addition, 
the  main  elements  and  objectives  of  the  planned  reforms  are  described  in  detail,  enabling  a 
thorough monitoring of the expected outcome of each reform.  

The  performance  of  investments  will  be  mainly  captured  by  the  achievement  of  targets 
monitored  by  each  public  entity  in  charge  of  implementing  the  measures,  although  some 
milestones are also foreseen, usually for the earlier stages of implementation. For measures 
for which the volume of investment is high and/or whose implementation is spread over several 
years,  the  targets  chosen  reflect  the  launch  of  the  investment  project  (for  example  with  the 
selection  of  beneficiaries  through  a  call  for  tenders),  then  the  result  of  the  works  undertaken, 
quantified  by  a  specific  indicator  (for  example,  the  number  of  km  of  networks,  the  number  of 
tons of greenhouse gas avoided, the number of people trained). For investments based on future 
calls  for  tenders  with  dedicated  budgetary  envelopes,  considering  that  it  is  not  possible  to 

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estimate ex ante the final number of beneficiaries, final milestones are based on the completion 
of the calls and financing decisions permitting the funds to be contracted.  

The  level  of  ambition  for  targets  related  to  investments  reflects  for  the  most  part  the 
costing estimates, while taking into account potential risks of delays in the implementation 
of each measure. All in all, the level of ambition for the targets proposed is high, reflecting the 
ambition  of  French  authorities  in  terms  of  climate,  environment,  competitiveness  and  social 
cohesion,  and  supported  by  an  appropriate  risk  assessment  which  makes  them  realistic  and 
achievable under the timeframe proposed.  In addition  to  the upstream  identification of risks in 
achieving the milestones and targets, the General Secretariat of European Affairs will coordinate 
with  responsible  entities  the  necessary  corrective  actions  to  address  those  risks  and  meet  the 
targets. 

Concerning the robustness of the underlying indicators for milestones and targets, data will 
be  collected  by  the  implementing  public  body  responsible  of  the  measure,  following  a 
verification process (cf. sub-section above) ensuring the reliability and accuracy of the data. 

Overall, milestones and targets proposed in the French plan are realistic, ambitious and granular 
enough to monitor the performance of the investments and reforms planned under the plan. 

Overall organisational arrangements 

The General Secretariat of European Affairs will play a crucial role in the implementation 
of the recovery and resilience plan. It will work in parallel to the national organisation set up to 
implement and monitor progress of France Relance (i.e. the General Secretariat in charge of the 
Recovery working in cooperation with the responsible Ministries under the aegis of the Ministry 
of Economy, Finance and Recovery). The General Secretariat of European Affairs will supervise 
and  coordinate  the  different  Ministries  involved  as  well  as  the  public  operators  in  charge  of 
specific  measures.  The  interministerial  competence  acquired  by  the  General  Secretariat  of 
European Affairs is a strong asset, given its role as point of contact for the Commission as the 
“coordinator” and managing authority.  

The strong supporting role allocated  to the  Ministry of Economy,  Finance and Recovery, 
and  in  particular  to  the  Treasury  and  the  Budget  Directorate,  is  a  guarantee  that  the 
administrative capacity required will be mobilised to ensure an appropriate monitoring of 
each  measure  under  each  component  of  the  plan.  Furthermore,  adequate  supervision  and 
quality control procedures will be ensured by the  Ministry of Economy, Finance and Recovery 
which will sign management delegation agreements with each Ministry. As indicated above (in 
the  first  sub-section  under  4.8.),  these  agreements  will  be  signed  after  verification  of  the 
reporting and control mechanisms in place in each Ministry, therefore ensuring the reliability and 
quality of data transmitted on the achievement of milestones and targets.  

Conclusion  

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The  arrangements  proposed  by  France  in  its  recovery  and  resilience  plan  are  expected  to  be 
adequate  to  ensure  effective  monitoring,  implementation  and  reporting  on  the  recovery  and 
resilience  plan,  including  the  envisaged  timetable,  milestones  and  targets,  and  the  related 
indicators. This would warrant a rating of A under the assessment criterion 2.8 in Annex V to the 
Recovery and Resilience Facility Regulation. 

4.9. Costing  

The  cost  description  generally  provides  a  breakdown  of  costs  for  the  investments  with 
references to earlier similar projects or to studies carried out to justify the cost figures. For 
the  many  demand-driven  measures,  such  as  the  ‘Programme  d’Investissements  d’Avenir’ 
measures or other investments based on calls for proposal, a milestone or target about passing all 
legal  hurdles  for  committing  or  contracting  the  funds  has  generally  been  included.  France 
submitted  the  table  on  costing  included  in  the  standard  template,  though  some  information, 
notably  on  comparative  costing  data,  has  not  been  filled  in.  France  has  not  provided  an 
independent validation for any of the cost estimates proposed. There are some shortcomings in 
the costing description for certain measures such as the description and justification of costs not 
covering  all  sub-measures,  no  calculations  being  provided  for  arriving  at  the  total  cost;  or 
supporting  documentation,  in  case  reference  is  made  e.g.  to  studies  or  past  projects,  in  some 
cases  not  being  provided.  With  more  systematically  complete  information,  explanations  on 
costing would have benefited from additional robustness.  

Reasonable costs 

To  support  their  cost  estimates,  France  provided  a  source  for  its  estimates  of  unit  costs 
(where pertinent) and gave adequate explanations on the methodology used for establishing 
the  cost  for  a  clear  majority  of  measures.  The  assumptions  underlying  the  cost  figures  are 
sound and there are no grounds for doubting the estimates provided. An issue concerns measures 
consisting  of  several  sub-measures,  where  the  methodology  for  allocating  costs  to  each  sub-
measure  is  not  always  entirely  clear.  For  a  small  number  of  measures,  no  calculations  for 
arriving  at  the  total  cost  are  provided,  or  those  calculations  do  not  reconcile  to  the  requested 
funding  or  the  associated  milestones  or  targets.  Depending  on  the  significance  of  the 
shortcomings  identified,  these  measures  are  assessed  as  having  low  or  medium  reasonability. 
Overall, the shortcomings above in the costing information affect only a minority of measures. 

Plausible costs  

The amount of the estimated total  costs of the recovery and resilience plan is in line with 
the nature and type of the envisaged investments. Costing information is generally backed by 
expert analysis or previous experience. For some measures, clear explanations were missing as to 
how the past projects presented or studies carried out as the basis for the estimates were used or 
adjusted  to  arrive  at  the  cost  estimates  presented.  Without  these  explanations,  it  is  difficult  to 
verify in those cases without reasonable doubt how some of the documentation provided fits into 
the cost breakdown. For other measures, the supporting documentation was not provided.   

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The  French  recovery  and  resilience  plan  also  contains  a  number  of  measures  that  are 
demand-driven: they have a certain budget that is to be allocated on the basis of calls for 
interest  or  calls  for  proposals.  An  ex-ante  cost  assessment  of  these  measures  inevitably  has 
limitations, since it is not always knowable beforehand what will precisely be achieved. In these 
cases,  France  generally  provided  justification,  by  reference  e.g.  to  the  budgets  or  volume  of 
applications of similar previous programmes, showing that the costs are not disproportionate to 
the size of the sectors concerned. These measures are assessed as having a high plausibility of 
cost. Overall, the shortcomings in the costing information affect only a minority of measures. 

No double Union financing 

France  has  indicated  for  nearly  all  measures  whether  other  Union  financing  is  planned, 
and, if it is, that the corresponding costs will not be covered by the recovery and resilience 
Facility. Further details could have been provided on the demarcation between funds, for those 
measures  which  are  similar  to  a  priority  also  funded  under  cohesion  policy  (e.g.  renovation  of 
buildings) or by the Just Transition Fund (decarbonisation) or by the EAFRD. However, given 
the strong governance between EU funds and control systems described in the Plan, any risk of 
double  funding  has  been  further  mitigated.  Further  details    on  the  arrangements  are  provided 
under section 4.10.  

Commensurate and cost-efficient costs 

The recovery and resilience plan is expected to be commensurate to the expected social and 
economic impact of the envisaged measures. The measures are expected to effectively help 
address  a  significant  subset  of  challenges  identified  in  the  European  Semester,  including 
the country-specific recommendations (CSRs), fiscal aspects thereof, and recommendations 
made  under  the  Macroeconomic  Imbalances  Procedure.  Furthermore,  the  reforms  and 
investments in the plan are aligned with the European ‘flagship initiatives’ of the 2021 Annual 
Sustainable  Growth  Strategy.  All  seven  flagship  initiatives  are  covered  by  the  Plan.  This  is 
described in more detail in Section 4.2.  

Moreover, the recovery and resilience plan contains measures to support economic growth 
and  economic  cohesion  in  an  inclusive  manner.  This  refers  in  particular  to  addressing 
weaknesses  of  the  French  economy,  boosting  growth  potential,  stimulating  job  creation,  and 
mitigating the adverse effects of the crisis. Several of these measures also contribute effectively 
to the implementation of the European Pillar of Social Rights, including through the promotion 
of policies for children and youth. This is described in more detail in Section 4.3.  

Conclusion  

The justification provided by France on the amount of the estimated total costs of the recovery 
and resilience plan is to a medium extent reasonable, plausible, in line with the principle of cost-
efficiency  and  is  commensurate  to  the  expected  national  economic  and  social  impact  on  the 
economy.  

France provided sufficient information and evidence that the amount of the estimated cost of the 
reforms and investments of the recovery and resilience plan to be financed under the Facility is 

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not covered by existing or planned Union financing. This would warrant a rating of B under the 
assessment criterion 2.9 of Annex V to the Recovery and Resilience Facility Regulation. 

4.10. 

Controls and audit  

Robustness of internal control system and distribution of roles and responsibilities  

The  Plan  describes  in  an  appropriate  way  the  system  for  the  implementation  of  the 
Recovery  and  Resilience  Facility  in  France.  At  central  government  level,  the  Minister  of 
Economy,  Finance  and  Recovery  (MEFR)  is  responsible  for  steering  the  recovery  plan,  in 
permanent  consultation with the General Secretariat for European Affairs (SGAE). The Plan is 
monitored  by  the  “Secrétariat  Général  France  Relance”  attached  to  the  Prime  Minister  and  the 
MEFR.  The  implementation  is  delegated  to  the  Ministries  by  means  of  “conventions  de 
délégation de gestion” and “chartes de gestion”. 

With regard to the internal control system, the authorities in charge of the  Recovery and 
Resilience Facility will rely on the national system in place in France to control the national 
budget.    The  “Commission  interministérielle  de  Coordination  des  Contrôles”  (CiCC)  is 
appointed  as  the  national  audit  and  control  coordinator.  The  national  regulatory  framework 
represents a robust internal control system whereby clear roles and responsibilities are allocated 
to the competent actors.  

The controls on the milestones and targets are delegated to the Ministries in charge of the 
implementation of the components through the “convention de délégation de gestion”. This 
delegation  of  responsibility  implies  that  each  ministry  sets  out  within  its  scope  the  internal 
control  system  defined  by  the  Ministry  of  the  Economy,  Finance  and  Recovery.  Verification, 
inspection and audit missions will be organised to ensure the effectiveness of these systems and 
to control the quality of the data transmitted for the most significant measures. The “conventions 
de delegation de gestion” detail the budget allocation, while the management and verifications to 
be  carried  out  by  the  line  ministries  will  be  featured  in  the  “chartes  de  gestion”,  still  under 
development. 

With regard to audit, the French plan indicates that the audit summary will be prepared 
based  on  the  reports  produced  by  the  various  control  bodies  (internal  and  external).  No 
further details are provided on how these various bodies will report to the CiCC in order to allow 
the  CiCC  to  draw  up  this  audit  summary.  The  CiCC’s  audit  approach  for  the  ESI  Funds 
combines  three  types  of  audits,  with  a  strong  emphasis  on  system  audits,  to  ensure  that 
management and control systems in place are adequate. Further horizontal or thematic audits will 
then  be  organised  on  the  basis  of  the  risk  assessment.  An  audit  strategy  tailored  to  the 
specificities of the Recovery and Resilience Facility will still need to drawn up. A circular signed 
by the Prime Minister will further detail the elements relating to: 

  The  system  organisation  and  the  obligations  of  each  structure  in  terms  of  ensuring 

reliability and control of data 

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  Procedures for collecting and storing data on monitoring indicators  

Adequacy of control systems and other relevant arrangements  

France  has  put  in  place  measures  with  the  view  to  protecting  the  Union's  financial 
interests.  France  has  adopted  already  in  2016  a  national  strategy  to  combat  fraud  against 
European  funds,  and  disposes  of  several  actors  in  the  fight  against  fraud:  MICAF  (“Mission 
interministérielle  de  coordination  anti-fraude”),  AFA  (“Agence  française  anticorruption”), 
DGFIP (“Direction générale des finances publiques”) and “le Haut-conseil pour la transparence 
de la vie publique”.   

The data on final beneficiaries as set out in Article 22 of the Recovery and Resilience Facility 
Regulation  will  be  collected  through  the  existing  financial  information  system  Chorus,  the 
procedures for which will be further detailed in the circular of the Prime Minister. In accordance 
with  the  Regulation,  all  the  standardised  categories  of  data  set  out  in  Article  22(2)(d)  shall  be 
collected. 

In this context,  prevention and  control activities, with  a view to minimising  risks of  fraud, are 
carried out through training, monitoring and ex post controls.  

Adequacy of arrangements to avoid double EU funding 

France  has  put  in  place  adequate  arrangements  to  avoid  double  EU  funding.  These 
arrangements are based on:  

  An  adequate  level  of  coordination  between  the  competent  services  and  the  authorities 

managing the EU funds in France: 

  Since the issue of coordination between the recovery and resilience facility and the other 
European funding sources mainly concerns cohesion policy funds, the “Agence nationale 
de la cohésion des territoires” (ANCT), as the interfund coordinating authority, identified 
the  measures  that  could  be  financed  by  several  funds  (recovery  and  cohesion),  and 
developed  a  methodology  for  separating  ex-ante  the  funding  streams  according  to  four 
criteria:  a  temporality  criterion,  a  thematic  criterion,  a  beneficiary  criterion  and  a 
territorial  criterion.  The  ANCT  will  continue  to  ensure  this  coordination  after  the 
submission of the recovery and resilience plan, the partnership agreement and the 2021-
2027 European programs and as long as potential overlaps are identified. 

  Adequate mechanisms to avoid double funding between the national and regional levels 

of implementation; 

  Adequate  procedures  within  the  financial  information  system  of  the  State  allowing 
flagging  the  funds,  several  axes  of  analysis  will  be  mobilised  in  order  to  follow  the 
expenditure; 

  The controls and audits of the various control and audit bodies: as part of their missions, 
the  audit  and  control  authorities  will  be  responsible  for  ensuring  the  absence  of  double 
financing 

Legal empowerment and administrative capacity of control function  

81 

 
 
The “Commission interministérielle de coordination des contrôles » (CiCC) is appointed as 
the national audit and control coordinator. The CiCC aims to protect the financial interests of 
the European Union in France. With its own power of control, it ensures that European funds are 
used in accordance with Union and national rules. It also has a mission to prevent and sanction 
fraud.  There  is  however  no  information  in  the  Plan  on  the  legal  empowerment  and  the 
administrative capacity of the CiCC to exercise their roles and tasks in relation to the  recovery 
and resilience facility. The controls on the milestones and targets will require new expertise and 
staffing, but the Plan does not elaborate on how the French authorities will tackle this challenge. 

The Responsibility for the implementation of the measures has been entrusted to each Ministry 
by the Ministry of the Economy, Finance and Recovery by means of a management delegation 
agreement. This delegation of responsibility implies that each ministry sets out within its scope 
the internal control system defined by the Ministry of the Economy, Finance and Recovery. 

Furthermore, the implementation of the Recovery and Resilience Facility will rely on the control 
actors in place within the French national system. 

Conclusion 

France’s plan describes in an appropriate way the system for the implementation of the recovery 
and  resilience  facility  in  France.  The  plan  is  monitored  by  the  “Secrétariat  Général  France 
Relance” attached to  the Prime Minister and the  Minister of Economy,  Finance  and Recovery. 
The  implementation  is  delegated  to  the  Ministries  by  means  of  “conventions”  and  “chartes  de 
gestion”.  With regard to the internal control system, the authorities is charge of the recovery and 
resilience  facility  in  France  will  rely  on  the  national  system  in  place  in  France  to  control  the 
national budget. The CiCC is appointed as the national audit and control coordinator. 

France has provided additional information on the roles and responsibilities of actors in charge, 
and indicated that a circular would be signed by the Prime Minister relative to: 

  The  system  organisation  and  the  obligations  of  each  structure  in  terms  of  ensuring 

reliability and control of data 

  Procedures for collecting and storing data on monitoring indicators 

Given that this circular will set out important elements of the control and audit system, which are 
not yet available as of the date of submission of the plan, a milestone relating to the signature of 
these  circulars  will  provide  further  assurance  and  enable  the  European  Commission  to  fully 
conclude on the adequacy of the arrangements proposed by France for the implementation and 
control of the funds allocated to France under the Recovery and Resilience Facility. Moreover, a 
report  by  the  CiCC  on  the  organisation  of  audits  will  set  out  the  audit  strategy  envisaged, 
including a description of the audit work on payment claims. 

Overall conclusion 

The arrangements proposed by France in the recovery and resilience plan to prevent, detect and 
correct  corruption,  fraud  and  conflicts  of  interest  when  using  the  funds  provided  under  the 

82 

 
 
Facility, including the arrangements aimed to avoid double funding from the Facility and other 
Union  programmes,  are  assessed  to  be  adequate,  provided  that  the  milestone  pertaining  to  the 
adoption of the circular and the provision of information on the organisation of audits is fulfilled 
in due time. This would warrant a rating of A under the assessment criterion 2.10 of Annex V to 
the Recovery and Resilience Facility Regulation. 

4.11. 

Coherence  

The recovery and resilience plan presented by France is structured around nine coherent 
components,  which  support  the  common  objectives  of  stimulating  the  recovery  of  the  French 
economy,  contributing  to  the  twin  transition  and  increasing  France’s  resilience  to  meet  the 
challenges of the twenty-first century on the path of sustainable and inclusive growth.  

Each component is built around consistent packages of both reforms and investments, with 
mutually reinforcing or complementary measures as explained hereafter.  

Mutually-reinforcing measures 

The second component, which aims to reduce the environmental impact of production and 
consumption  patterns,  includes  a  wide  range  of  measures  that  consistently  support  the 
“greening” of existing production and consumption methods across sectors. The proposed 
investments and reforms are mutually reinforcing: the law on circular economy, adopted in 
February  2020  and  to  be  implemented  during  2021  and  2022,  supports  the  investments  in 
recycling  and  reuse,  as  well  as  the  investments  in  the  modernisation  of  waste  sorting  and 
recovery centres. Furthermore, the draft Climate and Resilience law under discussion is key for 
all  “green  components”  (1  to  4),  as  it  aims  to  contribute  to  the  greenhouse  gas  emissions 
reduction target  for 2030. All  fields  (buildings,  transport, industry and agriculture) are covered 
and  the  law  will  aim  to  facilitate  investments  in  climate  mitigation  and  adaptation  and 
environmental protection.  

The  fifth  component,  which  aims  to  strengthen  the  equity  position  of  SMEs,  includes  an 
investment and reform that are mutually reinforcing to support businesses, notably SMEs.  
The  investment  will  support  the  financing  of  SMEs,  which  will  in  turn  strengthen  their 
competitiveness  and  capacity  to  invest,  notably  in  digital  and  green  projects.  The  reform  (law 
ASAP - Accelerating and Simplification of Public Action) is expected to both facilitate business 
development and speed up certain administrative procedures, for the benefit notably of SMEs.  

improve  technological 

includes 
The  sixth  component,  which  aims  to 
investments and reform that are  mutually  reinforcing to support R&D and innovation in 
strategic technologies. The investments aim at supporting research funding in strategic sectors, 
including space, and ensuring the preservation of R&D employment. These will be strengthened 
by the new research programming law for the years 2021 to 2030: it is expected to enhance and 
ensure  predictability  of  public  R&D  funding,  reform  public  researchers’  careers  and  foster 

innovation, 

83 

 
 
 
public-private cooperation. As such, it is expected to reinforce the measure proposed to preserve 
employment in R&D.  

Complementarity of measures 

The first component, which aims at improving  the energy efficiency of buildings, includes 
four  complementary  investments  that  cover  a  wide  range  of  potential  issues  in  relation  to 
energy  renovation  of  buildings  (from  public  to  private  buildings,  also  with  a  specific  focus  on 
social  housing  and  on  SMEs’  buildings).  While  the  investments  focus  on  the  renovation  of 
existing  buildings,  the  component  also  includes  a  complementary  reform  on  environmental 
performance  of  new  buildings  (RE2020).  It  is  an  important  reform  to  support  wider  energy 
efficiency  measures.  The  reform  of  the  housing  legislation  includes  some  sub-elements,  in 
particular  the  prolongation  of  the  ‘Pinel’  renting  investment  scheme,  which  also  support 
investments in rehabilitation of buildings. 

The  third  component,  which  aims  to  invest  in  sustainable  transport  infrastructure  and 
means  of  transport,  includes  investments  with  high  complementarity.  They  cover  a  wide 
range of transport modes to ensure consistent progress across mobility policies (rail, waterways, 
reserved lanes, urban transport, and cars). The 2019 Mobility Law is a broad legislative initiative 
to update the governance and the general framework of mobility policies, with implementation 
measures taking place during the Recovery and Resilience Facility timeframe. It is also relevant 
and  complementary  to  the  investments  supporting  the  decarbonisation  of  the  transport  sector. 
The component also includes the ‘green budgeting’ reform, implementing new methodologies in 
the field and which will promote investments conducive to the green transition, and is relevant 
for all the four “green components”.  

The fourth component, which aims to develop new green technologies and energy, includes 
complementary reform and investments related to the broad ‘Programme d' Investissements 
d’avenir’  (PIA4).  It  includes  a  strategy  for  the  development  of  hydrogen  in  France  and 
investments (via the PIA4) to support the development of key markets in green technologies. The 
reform of the overall governance of the PIA4 aims to make the governance of the PIA4 fit for 
purpose for the coming years, by making its political steer more agile and efficient, with better 
coordination  and  follow-up  of  the  wide  range  of  investment  strategies  pursued  under  the 
programme. This reform is therefore also relevant to other PIA4-related measures in other fields 
of  innovation  that  are  presented  as  part  of  components  6  and  9.  The  fourth  component  also 
includes more sectoral measures in relation to energy and green technologies, namely on support 
to the aeronautics sector.  

The  seventh  component,  which  aims  to  foster  the  digital  transition,  includes  a  set  of 
complementary digital investments for the State and territories to make public services more 
efficient  and  more  accessible.  Sectoral  measures  are  complemented  with  cross-cutting 
transformation  measures  aimed  at  fundamentally  changing  working  methods  within  the 
administration, such as the evolution of the digital work environment for public officials. These 

84 

 
 
investments in the modernisation of the State are backed by a reform, the "4D law”, which aims 
to  transform  relations  between  the  State  and  local  authorities:  it  intends  to  improve 
decentralisation,  to  promote  differentiation  and  ensure  that  each  territory  has  laws  and 
regulations  adapted  to  its  specificities  (de-concentration),  as  well  as  to  simplify  the 
administration  (“de-complexification”).  It  is  expected  to  empower  those  who  are  closest  to  the 
ground  and  thus  best  understand  the  reality  of  the  public  service  users.  This    component  also 
include  investments  related  to  cultural  heritage,  artistic  education  and  support  for  strategic 
cultural  sectors  most  affected  by  the  current  crisis  which  complement  investments  proposed 
under  other  components,  to  support  the  digital  transformation  of  SMEs,  as  well  as  the  PIA4 
programme  where  the  French  cultural  and  creative  industries  are  identified  as  key  sectors  for 
territorial growth and vibrancy. Lastly, the component includes an important reform of the public 
finance  governance  framework.  It  is  expected  to  introduce  a  multiannual  expenditure  rule  that 
should ensure consistency between the annual budget bills and the multi-year objectives, and will 
extend  the  responsibilities  of  the  French  High  Council  of  Public  Finances  (Haut  Conseil  des 
Finances  Publiques).  A  separate  reform  aims  at  enhancing  the  quality  of  public  spending  and 
introducing  an  annual  assessment  of  measures  taken,  in  compliance  with  the  expenditure 
trajectory of the public finance programming law.  

The eighth component, which aims to foster workers’ mobility and promote the integration 
of  all  into  the  labour  market,  includes  a  set  of  measures  that  are  highly  complementary. 
Indeed,  the  renewed  strategy  of  the  public  employment  service,  whose  implementation  started 
early  2020,  is  paving  the  way  to  more  personalised  support  to  job-seekers,  through  a  new 
diagnosis and support methodology. This reform, combined with the additional hiring of 15 000 
counsellors, to deal with the expected increase in unemployment in the coming months, should 
provide job seekers with tailored help and ultimately increase their chances of finding a job. The 
reform  of  the  short-time  work  scheme  will  support  financially  firms  in  a  changing  economic 
context,  shield  workers  from  unemployment  and  foster  their  mobility  on  the  labour  market 
through  access  to  further  upskilling  and  reskilling,  through  the  training  opportunities  financed 
through  FNE-Formation and Pro-A.  Besides these, other professional  reskilling measures  (AT-
Pro)  and  training  opportunities,  such  as  the  top-up  of  individual  learning  accounts  should  help 
reduce skills mismatches of the labour force and help equip employees with valuable skills. The 
investments  in  employment  and  youth  also  pursue  complementary  aims.  For  instance,  several 
programmes aim at helping disadvantaged or NEET youth get a better start professionally. The 
aim of these programmes presents synergies with other measures supporting youth employment, 
such as the hiring subsidy for youth under 26 or the “professionalisation contracts” support, both 
targeting the longer term employment prospects of youth. In coherence with these youth-targeted 
employment measures, measures in component 8 also aim at addressing the challenges of early 
school leaving and access to the vocational and tertiary education system. 

The ninth component, which aims to strengthen public investment in key sectors,  includes 
complementary  investments  notably  in  the  research  and  health  sectors,  accompanied  by  a 

85 

 
 
National Health System Reform Strategy. The investments support this strategy in a number of 
areas, namely, the digitalisation of care, access to care in the regions, prevention, the integration 
and  modernisation  of  care.  Investments  in  modernising  long-term  care  are  flanked  by  policy 
reforms  to  create  a  new  branch  of  the  social  security  system  so  support  the  autonomy  of 
vulnerable people, namely the persons with disabilities by a draft law on autonomy and old age. 
Support  to  research  and  research-oriented  start-ups  and  companies  in  the  health  sector  is 
coherent  with  the  measures  in  the  health  component  (pandemic  resilience,  digital  health).  The 
investments in the digital transformation of health care are underpinned by the plan “France Très 
Haut Débit”.  

At  the  plan  level,  all  components  pursue  complementary  aims  –  with  no  contradictory 
aims.  The  various  components  also  provide  synergies.  For  example,  component  1  and 
component 8 are complementary, as the training measures (support to apprenticeships and career 
changes)  of  component  8  will  contribute  to  component  1,  by  equipping  the  next  generation  of 
construction  sector  workers  with  the  skills  and  knowledge  needed  to  ensure  building  and 
renovation projects meet stringent energy efficiency requirements. The focus of component 2 on 
the  “greening”  of  production  and  consumption  is  highly  complementarity  with  component  4, 
which  focuses  on  the  “greening”  of  the  technologies  and  industries  of  the  future.  Overall,  the 
Plan provides for a balanced mix of reforms  and investments, considering the challenges to be 
addressed.  In order to  promote wider coherence  across instruments,  notably with  the European 
cohesion policy funds, a balanced territorial allocation of resources is encouraged. 

Conclusion 

Taking into consideration the qualitative assessment of all components of France’s recovery and 
resilience  plan,  their  individual  weight  (importance,  relevance,  financial  allocation)  and  their 
interactions,  the  plan  contains  measures  for  the  implementation  of  reforms  and  public 
investments which, to a high extent, represent coherent actions. This would warrant a rating of A 
under  the  assessment  criterion  2.11  of  Annex  V  to  the  Recovery  and  Resilience  Facility 
Regulation. 

86 

 
 
 
 
 
5.  ANNEX 

5.1. Climate tracking and digital tagging table37  

Measure/ 
Sub-
Measure 
ID 

C1.I1 

C1.I2 

C1.I3 

C1.I4 

C2.I1 

C2.I2 

C2.I3 
C2.I4 

C2.I7 

C2.I7 

C2.I8 

C2.I8 

C2.I9 
C2.I10 

C3.I1 

Measure/Sub-Measure Name 

Energy renovation of private housing, 
including energy sieves 
Energy renovation and major 
rehabilitation of social housing 
Thermal renovation of public 
buildings 
Energy renovation of very small 
enterprises (VSEs) and small and 
medium sized enterprises (SMEs) 
Decarbonisation of industry 
Urban densification: sustainable 
construction 
Urban densification: brownfields 
Biodiversity 
Modernisation of sorting centres: 
modernisation of sorting centres for 
packaging and modernisation of 
sorting centres and for waste except 
packaging and recycling equipment 
Modernisation of sorting centres: 
sorting at source, collection and 
valorisation of bio-waste 
Recycling and reuse: reuse or repair 
for non-plastic products 
Recycling and reuse: reduction, reuse 
and development of substitution 
solutions for plastic 
Plant protein plan 
Forests 
Support to the railway sector: 
recapitalisation of SNCF Réseau - 
regeneration of national railways 

Budget 
(EUR 
m) 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

1404.5 

025bis 

100% 

500 

025bis 

100% 

3800 

026bis 

100% 

120 

300 

350 

260 
185.5 

024 

40% 

024 

050 

050 
050 

40% 

40% 

40% 
40% 

84 

042/044 

40% 

100 

042/044 

40% 

21 

40 

70 
150 

042 

40% 

042 

40% 

047 
037 

40% 
100% 

2300 

068 

100% 

37  While  the  total  cost  of  France’s  recovery  and  resilience  plan  exceeds  the  total  allocation  of  non-repayable 
financial support to France, France will ensure that all spending related to the measures mentioned in this table as 
contributing to climate objectives are fully financed by the funds from the Recovery and Resilience Facility. 

87 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
C3.I1 

C3.I1 

C3.I1 

C3.I1 

C3.I2 

C3.I2 

C3.I3 

C3.I4 

C3.I4 

C3.I5 

C3.I5 

C3.I6 

C3.I7 

Support to the railway sector: 
recapitalisation of SNCF Réseau - 
renovation of engineering structures 
Support to the railway sector: 
recapitalisation of SNCF Réseau - 
regeneration of local railway lines 
Support to the railway sector: regional 
railway lines 
Support to the railway sector: 
development of rail freight 
Support to demand for clean vehicles: 
Eco-bonus for light vehicles  
Support to demand for clean vehicles: 
Eco-bonus for heavy vehicles 
(electric) 
Daily mobility: development of public 
transport 
Acceleration of works on transport 
infrastructure: deployment of electric 
charging points 
Acceleration of work on transport 
infrastructure: modernisation of the 
CROSS network & Revision of the 
digital system of maritime affairs 
Greening of the State’s fleet: Electric 
vehicles 
Greening of the State’s fleet: Plug-in 
hybrid vehicles 
Greening of harbours: targeted actions 
in harbours (alternative fuels 
infrastructure part) 
Strengthening the resilience of 
electricity networks and energy 

1250 

068 

100% 

250 

069 

40% 

300 

40 

885 

069 

069 

40% 

40% 

N/A38 

40% 

100 

N/A39 

100% 

900 

073 

100% 

100 

077 

100% 

25 

97.4 

57.6 

N/A40 

100% 

N/A41 

40% 

87.5 

077 

100% 

50 

037 

100% 

084 

100% 

38 The ‘Methodology for climate tracking’ annexed to the Recovery and Resilience Facility Regulation does not set 
out intervention fields that would allow for climate or environmental tracking of electric vehicles or plug-in hybrid 
vehicles, except for vehicles for urban transport falling under intervention field 074. According to Article 18(4)(e) of 
the Regulation, the methodology should however ‘be used accordingly for measures that cannot be directly assigned 
to an intervention field listed in Annex VI’. In this context, the Commission has applied a 100% climate contribution 
coefficient for zero-emission vehicles of all categories (this includes battery electric and fuel cell/hydrogen-powered 
vehicles); a 40% climate contribution coefficient for plug-in hybrid light-duty vehicles; and, in line with the criteria 
under the Taxonomy Regulation, a 100% climate coefficient for low-emission heavy-duty vehicles. 
39 See footnote above. 
40 See footnote above. 
41 See footnote above. 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
C4.I1 

C4.I1 

C4.I1 

C4.I1 

C4.I1 

C4.I1 

C4.I1 

C4.I2 

C4.I2 

C4.I3 

C4.I3 

C6.I1 

C6.I2 

C6.I2 

C6.I2 

C6.I2 

transition in rural areas 
Innovate for the green transition 
(PIA4): Decarbonised hydrogen 
Innovate for the green transition 
(PIA4): Decarbonisation of industry 
Innovate for the green transition 
(PIA4): Sustainable agricultural 
systems 
Innovate for the green transition 
(PIA4): Recycling and reincorporation 
of recycled materials 
Innovate for the green transition 
(PIA4): Sustainable cities and 
innovative buildings (decarbonisation 
part) 
Innovate for the green transition 
(PIA4): Digitalisation and 
decarbonisation of mobility 
(decarbonisation part) 
Innovate for the green transition 
(PIA4): Biobased Products and 
Industrial Biotechnologies – 
Sustainable Fuels 
Develop decarbonised hydrogen: 
Support scheme for renewable and 
low-carbon hydrogen production 
Develop decarbonised hydrogen: 
IPCEI on decarbonised hydrogen 
Support plan to the aeronautics sector. 
Support to R&D (part contributing 
directly to the low-carbon economy – 
70%) 
Support plan to the aeronautics sector. 
Support to R&D (part contributing 
indirectly to the low-carbon economy 
– 30%) 
Preservation of employment in private 
R&D digital part (40%) 
Innovating for the resilience of our 
business models (PIA4): Cultural and 
creative industries 
Innovating for the resilience of our 
business models (PIA4) 5G and future 
telecommunications technology 
Innovating for the resilience of our 
business models (PIA4) Cloud 
Acceleration Strategy 
Innovating for the resilience of our 
business models (PIA4) Quantum 
technologies 

89 

500 

300 

022 

100% 

022 

100% 

200 

047 

40% 

150 

023 

40% 

100 

022 

100% 

100 

022 

100% 

200 

022 

100% 

650 

032 

100% 

1275 

032 

100% 

959 

022 

100% 

411 

120 

300 

300 

300 

350 

009bis 

100% 

009bis 

100% 

021bis 

100% 

054bis 

100% 

055 

100% 

021quate
r 

100% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C6.I2 

C6.I2 

C6.I3 

C6.I3 

C6.I4 

C6.I4 
C7.I1 

C7.I2 

Innovating for the resilience of our 
business models 
(PIA4)_Cybersecurity 
Innovating for the resilience of our 
business models (PIA4) Education and 
digital 
Supporting innovative businesses 
(PIA4) (climate-related part – 30%) 
Supporting innovative businesses 
(PIA4) (digital-related part – 30%) 
Space Rocket launch system (digital-
related part – 40%) 
Space R&D projects 
Digitisation of companies 
Digital upgrade of the State and 
territories 

C7.I3 

Cybersecurity of State services 

C7.I4 

C7.I5 

State digital upgrade: digital identity 
Equipment and infrastructure of the 
Ministry of the Interior 

C7.I6  Ministry of the Interior's applications 

C7.I7 

C7.I8 

C7.I9 

C7.I10 

C7.I11 

C7.I11 

C7.I11 

C7.I11 

C7.I11 

Mobility and teleworking at the 
Ministry of the Interior 
Administrative continuity: digital 
upgrading of the administration of the 
education system 
Educational continuity: digital 
transformation of the school 
Developing access to higher education 
throughout the country thanks to 
digital 
Support for cultural sectors and 
heritage renovations. Ecological 
transition fund 
Support for cultural sectors and 
heritage renovations. Modernisation 
plan for cultural higher education 
establishments (digital part) 
Support for cultural sectors and 
heritage renovations. Modernisation 
plan for cultural higher education 
establishments (renovation part) 
Support for cultural sectors and 
heritage renovations. Press Sector Plan 
- climate part 
Support for cultural sectors and 
heritage renovations. Book Sector 
Plan - digital part (40%) 

90 

200 

350 

225 

225 

66 

170 
385 

500 

136 

30.3 

22.7 

76.7 

46.5 

35 

131 

35 

13 

5.6 

021quin
quies 

100% 

012 

100% 

009bis 

100% 

021quate
r 
009bis 
010 

100% 

100% 
100% 

011 

100% 

021quin
quies 
011ter 

011 

011 

011 

100% 

100% 

100% 

100% 

100% 

011 

100% 

012 

100% 

012 

100% 

055 

100% 

022 

100% 

026 

40% 

64.4 

026 

40% 

16 

022 

100% 

21.2 

021bis 

100% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C7.I11 

C8.I1 

C8.I2 

C8.I11 

C8.I12 

C8.I13 

C8.I17 

C8.I18 

C8.I19 

C8.I20 

C8.I21 

C8.I21 

C9.I1 

C9.I2 

C9.I3 

C9.I4 

C9.I5 

C9.I6 

C9.I7 

C9.I7 

C9.I8 

C9.I8 

Support for cultural sectors and 
heritage renovations. Cinema Sector 
plan - digital part 
FNE-Training digital part (20%) 
Reskilling through dual training 
programmes (Pro-A) digital part 
(40%) 
Creation of places in higher education 
Plan for youth: higher education for 
post-baccalaureate students 
“Personalised guidance towards 
employment and autonomy” (PACEA) 
and youth guarantee 
Distance training courses (PIC) 
Digital educational content: platforms 
for digital content 
Additional allocation for the “Pro 
transitions” associations (AT pro) 
Top-up of individual learning accounts 
for digital skills 
Increase of resources for France 
Compétences (climate-related part – 
40%) 
Increase of resources for France 
Compétences (digital-related part – 
40%) 
Digital health 
Modernisation and restructuring of 
hospitals and health care supply 
(‘investissements structurants’ – 50%) 
Renovation of medico-social 
establishments (‘PAI immobilier’ part) 
National suicide prevention hotline 
High-speed broadband plan ("France 
Très Haut Débit") 
Digital Inclusion 
R&D recovery strategy (National 
Research Agency) (climate part – 
40%) 
R&D recovery strategy (National 
Research Agency) (digital part – 40%) 
Support teaching, research, 
development and innovation 
ecosystems (PIA4) (climate-related 
part – 25%) 
Support teaching, research, 
development and innovation 
ecosystems (PIA4) (digital-related part 
– 25%) 

91 

10 

160 

108 

180 

76 

233 

160 

304 

100 

25 

021bis 

100% 

108 

100% 

108 

100% 

099 

099 

40% 

40% 

099 

40% 

011 

011 

100% 

100% 

016 

40% 

108 

100% 

300 

01 

100% 

300 

2000 

108 

100% 

095 

100% 

1250 

026 

40% 

026 

40% 

1250 

2.94 

240 

250 

013 

053 

108 

100% 

100% 

100% 

171.2 

022 

100% 

171.2 

009bis 

100% 

187.5 

022 

100% 

187.5 

009bis 

100% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Int. Field = intervention field 
Coeff. = Coefficient for the calculation of support to climate change objectives and to digital transition, 
on the basis of Annex VI and Annex VII to the RRF Regulation 

92