French government outlines aid for south-west France following summer wildfires

Prime Minister Sébastien Lecornu unveiled a reconstruction package for French communes torn apart by wildfires in south-west France during a visit to the area on Monday (August 17). 

Mr Lecornu was visiting Le Porge (Gironde), a commune that saw three-quarters of homes destroyed during a 42,000 hectare-burning megafire in July. 

Key proposals include a €12 million aid package already available for local authorities, and promises that most construction permits to reconstruct buildings in a like-for-like manner will be approved within a month of submission. 

A tourism campaign for enticing visitors back to the region and aimed partially at Britons, and several tax exemptions for businesses, are also included.

The overall cost of all the measures is around €100 million, the prime minister said.

The prime minister also warned insurers against “playing games” with fire damage claims from residents and businesses in the area. 

Immediate aid for locals 

The €12 million aid is “available immediately” and can be used by local authorities to rebuild important infrastructure. 

Of the total, €10 million has been ring-fenced for communes in Gironde, with the remaining €2 million for communes in the Landes department, which has also seen a number of major fires this summer. 

A total of 15 communes have access to the aid package, and local authorities will have autonomy in how funds are spent. 

“I do not want public authorities, meaning municipalities and the state, to be singled out or criticised for excessive bureaucracy that might delay the return to normal,” said Mr Lecornu regarding the fast-tracking of building permits. 

Authorities will aim to provide reconstruction permits within a one-month timeframe, although there may be cases where additional time is needed. 

Local authorities have been given the ability to ask the state for increased funding in relation to emergency rehousing, and the government plans to issue a decree authorising temporary structures on private or municipal land for three years instead of one.

Permits for new constructions, or different types of building on the site of properties damaged by fire will not benefit from this quickened process. 

However, they will benefit from improved scrutiny over natural disaster risks, including wildfires, as part of a new ‘reconstruction-and-adaptation’ strategy.

“The idea is to build in a way that offers greater protection against fire risks, meaning not necessarily in the same locations. Certain areas will likely be identified as no longer suitable for construction,” said Housing Minister Vincent Jeanbrun.

The minister noted however, that 100% of those who have registered for support following the fires have been provided with an accommodation solution.

Insurance companies who do not provide adequate compensation will also be named and shamed by the government, the prime minister said. 

“This remains a competitive sector where we certainly have the right to express our views,” he said.

The region will take part in an experience-exchange programme alongside parts of Spain, Portugal, Greece, and Canada – nations impacted by severe wildfires – to plan how to better deal with future catastrophes.

Support for local businesses

Local businesses will also see several measures aimed at reducing financial burdens over the coming years.

Firstly, companies that saw premises destroyed by fires will be completely exempt from property taxes and cotisations foncières des entreprises (CFE, local business taxes). 

Those companies impacted but whose business was not fully destroyed or who were located in evacuation areas will have property taxes covered by the government (who will send the funds directly to local authorities). 

It is a “fairly radical measure, somewhat costly for public finances, but, well, I stand by it,” said the prime minister.

A €2 million tourism campaign for the two departments will be launched, funded by public and private investors. 

Aimed primarily at Britons, Germans, and Dutch tourists, it needs to ‘correct’ any negative opinions of the area following the wildfires and convince holidaymakers to return, said Minister for Tourism and SMEs Serge Papin. 

Mr Papin also announced the creation of a guarantee fund to offer loans for reconstruction.. 

“For every euro the region contributes, the BPIFrance (Public Investment Bank) contributes two,” he said, with aims to reach at least €30 million. 

The fund may be expanded if necessary.