French President Nicolas Sarkozy is set to present a new stimulus plan for the country. In response to the worldwide economic situation and predictions of a recession for the eurozone in 2009, the government of France is proposing a 20 billion euro package. This new plan will target the country’s car industry, housing and household spending.
The French car industry has been hit hard by the economic situation, with national car makers Renault and Peugeot seeing significant drops in sales. Both companies have announced major cuts in jobs, and President Sarkozy is making the stimulus announcement in the northern French town of Douai, home to a Renault plant.
Workers in the area are desperate, according to Roger Marie, a councilor from the region. “The future of car plants is like the future of all industries in France, because if the people don’t have money to buy, we will have a lot of millions and millions of people on the dole.
“So there is a lot of fear among the workers about their future and people are very scared about what could happen,” he continued.
Other parts of the package will include a 1,000 euro bonus to car owners who get rid of older cars in favor of new models that are more fuel efficient and less polluting. There is also expected to be grants to manufacturers to help them develop newer, environmentally friendly cars. In addition to the auto industry help, the package will offer support for low income households in order to boost consumer spending.
