Sarkozy to help French car, housing sectors
[2008-12-23 17:04:27]
Sarkozy to help French car, housing sectors
Source :
Automotive News Europe
[Posted on Dec 4,2008 at 9:25]
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
PARIS (Reuters) -- France’s President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France’s economy through the global downturn.
Sarkozy will announce his plans at 12:00 CET at a Renault factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
The plan is expected to be worth around 20 billion euros ($25.28 billion), some 1 percent of gross domestic product. This would increase France’s deficit but the extra spending has been encouraged by the European Union as a way out of the crisis.
EU leaders have struggled to reach agreement on a stimulus package for the entire 27-state bloc but Sarkozy has been leading the drive for a campaign of borrow and spend to breathe life into France’s moribund economy.
He is expected to announce a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard and buy a new one, and incentives to encourage auto firms to do research into more environmentally friendly models.
"In France we believe in the future of the car industry because it counts for 10 percent of jobs, that’s 2.5 million jobs if we include production, subcontractors and distribution," government spokesman Luc Chatel told RTL radio on Wednesday.
Construction
Recent announcements have underlined the threat, with Renault planning 6,000 job cuts across Europe through voluntary redundancies and Europe’s second biggest carmarker PSA/Peugeot-Citroen planning to cut 2,700 jobs in France.
Sarkozy is also expected to unveil steps to help the construction sector, facing a sharp housing market slowdown.
French property group Nexity has said it would cut 500 jobs and Bouygues said on Monday it saw the slowdown hitting its real estate operations in 2010.
The French press has reported Sarkozy will increase the sum allotted for zero-interest housing loans for poor households. He may also announce 10 billion euros in public housing investment.
He may also include some measures that he has already flagged, including a round of infrastructure projects and a one-year break in a business tax on investments.
The government is expecting the deficit to breach the EU’s 3.0-percent deficit limit next year, curtailing the government’s room for maneuver on new spending.
Prime Minister Francois Fillon has said the stimulus plan will be focused on investment. The EU’s Stability and Growth Pact, which underpins the euro and sets the EU’s economic rules, puts a premium on investment when it comes to the disciplinary procedure for deficit breaches.
France narrowly escaped recession in the third quarter but analysts are expecting a sharp contraction in the last three months of the year with consumer spending in October suffering its sharpest monthly drop since June.
Source: 中华汽配网
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