Govt report calls for 35 billion euro spending plan to boost economy

Former prime ministers Michel Rocard and Alain Juppé (right and left of photo) have handed the president a long-awaited report on the post-credit crisis economy. Its conclusion is proving controversial, with many baulking at the 35 billion euro bill.

By FRANCE 24 (text)

The report into France's "Grand Emprunt" or "National Loan" was handed to French President Nicolas Sarkozy on Thursday. Its authors, former prime ministers Alain Juppé and Michel Rocard, looked at various ways to finance long-term projects to boost France's growth potential after the current economic crisis is over.

But the report has proved controversial, inside and outside of government circles.

The loan could end up totalling 35 billion euros. It will be financed in part by 13 billion euros that various banks owe the state, while the rest will be raised by auctioning off government bonds on the financial markets.

But the deal leaves many, on the left and the right, dissatisfied.

“A big loan is a big folly, a little loan is a little folly,” commented François Goulard, an MP for the Brittany region who supports Sarkozy’s UMP majority.

“It'd be better to reconsider public spending and take another look at our tax system rather than raising money like this,” said Pierre Moscovici, an opposition MP for the Jura region.

The lion’s share of the loan - sixteen billion- will be put aside for research universities, with the aim of building centres of excellence to rival American laboratories.

Some 4.5 billion euros have been earmarked for local sustainable development and green building projects. Sticking to this theme, two billion euros of the total has been set aside to develop vehicles of the future – such as electric cars - and research into carbon-free energy.

The aeronautic and aerospace industries will share another two billion euros of the total.

The digital world will not be left out either, with four billion euros set to go towards improving high speed internet connectivity and France's digital infrastructure.