President Nicolas Sarkozy unveiled a €26 billion stimulus plan for the faltering French economy today, targeting investment projects rather than directly aiding consumers.
France is the latest European Union country to open state coffers to try to counteract the sharp economic downturn and presidential officials said the measures would cost the equivalent of 1.3% of gross domestic product (GDP).
The plan earmarks €10.5 billion for infrastructure, research and support for local authorities, according to background documents handed out by Mr Sarkozy's office.
It also included moves to help the ailing auto industry, which Mr Sarkozy said employed 10% of the workforce directly or indirectly, encouraging people to scrap older vehicles and buy new, more environmentally-friendly models.
The package is expected to boost French growth by around 0.6% next year, but will also push the deficit to 3.9% of GDP against a previous target of 3.1% and add €20 billion to the public debt mountain.
