French President Nicolas Sarkozy is to announce a package worth billions of euros to help prop up the ailing motor trade and housing sectors in a stimulus package intended to guide France through the financial turbulence. Recent figures show the country is now feeling the pinch with business investment down and jobs on the line. Unemployment has risen past the politically difficult two million mark, consumption has dropped and the economy will go into recession in the new year.
The bail-out is expected to be around 20 billion euros and include a 1,000-euro subsidy for car owners who take their vehicles to the scrap yard then buy a new one. It is reported he will also increase the sum put aside for zero interest housing loans for poor families. In addition it is thought 10 billion euros will be pumped into public housing investment.