French textile firms to benefit from tax breaks
French textile companies will be among those to benefit from a EUR 20 billion business tax credit scheme, launched by the government to boost competitiveness.
Finance minister Pierre Moscovici urged small and medium-sized firms, which are struggling the most in the downturn, to take advantage of the programme.
Cheynet, a company that makes elastics for sportswear, swimwear and lingerie, was one of the first to sign up. "Reducing our welfare contributions is vital. The last months have not been good," said its CEO Gregoire Guiraud.
The scheme aims to help companies reduce their labour costs by giving them a tax credit equal to 6% of their wage bill on salaries up to 2.5 times the minimum wage. France's EUR 2 trillion economy is on the brink of its third recession since 2008 after having contracted 0.3% in the final quarter of 2012.
