Sarkozy to address nation on economic crisis


PARIS : French President Nicolas Sarkozy will address the nation Thursday to explain his policies in view of the growing economic and financial crisis affecting the world economy.

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The French President will explain his national strategy to try to save jobs and prop up Frances banking system and also to inject 26 billion Euros (1 Euro = USD 1.28) into the economy here, mainly in measures to help small and medium-size industries.

France has also decided to accord between five billion and six billion Euros in fresh capital to the badly-hit automobile sector which is suffering from plummeting demand and which is also shedding jobs.

That financial arrangement is contingent on the automobile sector keeping its production line in France and not transferring plants to other countries where labour costs are cheaper.
Sarkozy will speak on national radio and television for about 90 minutes, his office announced, but he is not expected to make any other major announcements regarding financial aid to the economy, sources at the Elysee Palace said.

He will explain his decision to inject capital into Frances banks and illustrate that this money is not an untied loan but is linked to the need to get credit moving again between banks in France and then on to the general public.

The French leader will also reiterate that the money accorded to the banks is in the form of “interest-bearing loans” and it also requires reforms and accountability in the banks. (end) KUNA 051413 Feb 09NNNN