France Launches $25 Billion Investment Fund, Stimulus Package On The Way

November 21, 2008 4:37 p.m. EST

Paris, France (AHN) - French President Nicolas Sarkozy announced on Thursday the availability of a $25 billion Strategic Investment Fund to protect local companies against foreign takeover and revive the country's economy.

Aside from the fund, Sarkozy said the government will also unveil a stimulus package in the coming weeks to be used for massive investments in infrastructure, education and research. He also hinted the package may be used to provide assistance to the French car industry.

The first beneficiary of the strategic investment fund will be the aeronautics industry, Sarkozy said at an event in aeronautics supplier Daher.

The president said, "I won't let foreign funds get bargains thanks to the current levels of the stock market... I won't let French industry move out."

He added, "The day we don't build trans, airplanes, cars and ships, what is left of the French economy? Memories. I will not make France a tourist reserve."

Daher will receive $94 million (75 million euro) from the investment fund. The company manufactures parts for the nuclear, defense and automobile industries.

The fund will be checked by the EU to ensure it will not stop the free flow of capital. Sarkozy, the current EU rotating president, has been advocating for laxer rules in the 27-member block to permit state protection of local firms against international takeovers arising from the global financial crisis.