France to Reconsider Fourth Terminal at Paris Charles de Gaulle Airport

French Junior Minister for Transport Jean-Baptiste Djebbari arrives to attend the weekly cabinet meeting at the Elysee Palace in Paris, France, July 7, 2020. REUTERS/Benoit Tessier
French Junior Minister for Transport Jean-Baptiste Djebbari arrives to attend the weekly cabinet meeting at the Elysee Palace in Paris, France, July 7, 2020. REUTERS/Benoit Tessier
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France to Reconsider Fourth Terminal at Paris Charles de Gaulle Airport

French Junior Minister for Transport Jean-Baptiste Djebbari arrives to attend the weekly cabinet meeting at the Elysee Palace in Paris, France, July 7, 2020. REUTERS/Benoit Tessier
French Junior Minister for Transport Jean-Baptiste Djebbari arrives to attend the weekly cabinet meeting at the Elysee Palace in Paris, France, July 7, 2020. REUTERS/Benoit Tessier

The French government will reconsider plans to build a fourth terminal at Paris Charles de Gaulle airport because of the coronavirus crisis, Transport Minister Jean-Baptiste Djebbari said.

State-owned airport operator ADP plans to build a fourth terminal at CGG-Roissy with a capacity of 35 to 40 million passengers per year, but green activists and local towns are fighting it and the fall in traffic due to COVID-19 has raised doubts about its viability.

"The project to receive 40 million more passengers by 2030 is probably no longer justified as it was planned," Djebbari said on Europe 1 radio.

He said French airports would still need investment for upgrades and would have to make sure that new types of planes, such as hydrogen-powered planes, can land.

"The problem of T4 will be reviewed in depth, that is the reality," Djebbari said, adding that he has discussed the issue several times with ADP chief Augustin de Romanet.

Djebbari said the virus crisis had cut traffic at French airports to about 40% of pre-crisis levels, with slightly more traffic on domestic lines and a bit less on long-distance lines.

"Traffic is restarting very gradually. We will see in September whether business clients return, that will give an indication for the end of the year and next year," he said.

Djebbari, a former airline pilot, added that depending on this outlook, projects for airports and will have to be adjusted and airlines will have to adapt their offer.

ADP said on Monday passenger traffic could take as long as seven years to recover completely from the crisis.

First-half traffic at CDG and Orly combined fell by 62% to 19.8 million passengers.

French media have estimated terminal 4 would cost 7 to 9 billion euros.

A government-organised citizens' consultation about climate change has advised to ban all new airport construction.



Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.