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Friday, December 5, 2008
France unveils huge stimulus plan
French President Nicolas Sarkozy has unveiled a 26bn-euro ($33bn; £23bn) stimulus plan to help France fend off financial crisis.
The measures include a 1bn-euro loan for carmakers and 5bn euros of new public sector investments.
The plan amounts to 1.3% of France's gross domestic product and should boost its economic growth by 0.6% in 2009.
It will also increase the budget deficit to 3.9% of GDP from the previously forecast 3.1%.
This is above the 3% ceiling demanded by the European Commission, but the rules have been eased to help members of the European Union tackle the crisis.
About 20bn euros will be added to the public debt.
"We will not give up our goal of sorting out our finances as soon as possible. Not doing anything now would have cost us much more," said President Sarkozy.
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