France announces crisis loans for firms hit by fuel-price surge

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PARIS: France has launched an emergency loan programme to support small and medium-sized businesses struggling with the soaring energy costs driven by the war in the Middle East. Announced by the economy ministry, this initiative fulfills a recent pledge by Prime Minister Sebastien Lecornu to provide rapid financial relief to industries most vulnerable to fuel price volatility.

The program specifically targets firms in the transportation, agriculture, and fisheries sectors, offering loans of up to 50,000 euros ($57,600). To ensure the aid reaches businesses quickly, the public investment bank Bpifrance will manage a streamlined digital application process, with funds expected to be available within seven days. These three-year loans carry a fixed interest rate of 3.8 percent.

In addition to this liquidity support, Economy Minister Roland Lescure has called on the European Commission to investigate whether refineries are taking advantage of the conflict to unfairly inflate prices. By combining direct financial intervention with a push for regulatory oversight, the French government aims to protect essential small businesses and maintain economic stability amid the ongoing energy crisis.