Members of the french cabinet met at the Elysee palace on Wednesday (27 August) to discuss a reflation plan drawn up by President Giscard D'Estaing to boost the French economy.
SV Minister enters Elysee palace
SV PAN Schumann arriving
SV Minister enters
GV & SV Employment Agency (3 shots)
GV Industrial sites not too busy (6 shots)
GV Train standing idle (2 shots)
Initials BB/1725 AB/PN/BB/1740
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Background: Members of the french cabinet met at the Elysee palace on Wednesday (27 August) to discuss a reflation plan drawn up by President Giscard D'Estaing to boost the French economy. It's expected that the plan , which necessitates an increase from fifteen-thousand-million frances to twenty-five-thousand million francs to be pimped into the economy, will be adopted at another cabinet meeting in the fourth of September.
The basic plan was drawn up last month by m. Giscard D'Estaing and West German Chancellor Helmut Schmidt who's also planning to liven up the German economy with a large dose of public funds.
With unemployment in france expected to soar to one million two hundred thousand in the coming weeks the Government is anxious to take measures that will have a quick result. It's expected that the plan will give a boost to consumer demand through the easing of hire purchase terms and companies could be granted some tax relief by the deferment of Value Added Tax payments.
However the Giscard plan has already run into advance criticism, not only from the opposition and union leaders but from government supporters, some of who believe that the proposed measures are insufficient to bring about a speedy revival to the country's ailing economy.
SYNOPSIS: French cabinet ministers met at the Elysee palace on Wednesday to hammer out details of a reflation plan drawn up by president Giscard D'Estating to revitalise the ailing French economy. Although it means substantial injections of public funds to make it work the plan has already been criticised by many as being inadequate.
With the French now returning from their annual August holidays more workers than ever have no jobs. It's expected that in the coming weeks unemployment will soar to one million two hundred thousand. Not only os unemployment rising but industrial production has fallen off badly, exports are stagnant and prices are still rising above the ten per cent set down by Monsieur Giscard D'Estaing as a limit for the year. However if the government adopt's the new plan at next week's cabinet meeting it's hoped the new measures will not only decrease unemployment quickly but get industry rolling again almost immediately.