Paris - The French government will establish an investment fund of 20 billion euros (25 billion dollars) to support French companies and protect them from foreign takeovers, President Nicolas Sarkozy announced on Thursday. Speaking to workers in the central French city of Saint-Julien de Chedon, Sarkozy said the "strategic investment fund in the national interest" is to be managed by the Caisse des Depots, a government financial institution under the control of parliament.
The amount of money committed to the fund was smaller than expected. Originally, the talk was of at least 100 billion euros. In addition, only 6 billion euros will be available immediately.
The aim of the fund is to give the government a minority stake in blue-chip companies or firms in strategic sectors, to prevent foreign enterprises from taking advantages of falling share prices and snapping them up cheaply.
The fund could also invest in small or medium-size enterprises with real growth potential, particularly in the strategic sectors of defence, aviation, health and biotechnology.
The French president made his announcement at a plant of the aircraft-equipment supplier Dahers, which is to be one of the first beneficiaries of the fund, which will give the company 75 million euros.
Sarkozy said that no money would be given to companies that were in danger of not being able to survive the economic crisis.
