France is set to introduce a $33 billion stimulus package designed to help steer the European nation out of the recession that is hitting nearly every country across the globe. The stimulus package, announced yesterday in front of a Renault factory in Douai, France, by president Nicolas Sarkozy, includes about 1.2 billion euros in aid for the auto industry in addition to incentives aimed at encouraging French people to buy new cars.
The package provides about 1.2 billion euros to PSA Peugeot Citroën and Renault. It was announced in front of the Renault factory that builds the compact Megane, among other Renaults.
The French government will give up to 1,000 euros to those who scrapped old vehicles in exchange for new, environmentally friendly cars. Similar plans have been offered in other nations and even within the United States – a nearly identical program began in Texas over a year ago.
The stimulus package pushes France’s defecit to 3.9 percent of its GDP in 2009, well above the 3 percent limit imposed by the European Union. However, the EU has relaxed its standards for 2009 to help governments cope through the economic downturn. Sarkozy said he intends to restore France’s finances within a few years.
12/04, 10:35 AM
posted by:
mayer_ray_nagin
[sarcasm]
No no no, you must be wrong. According to the haters, only American car companies need government assistance. Foreign companies are all run perfectly and efficiently and only produce top quality crap.
[/sarcasm]
12/04, 11:02 AM
posted by:
mulletmaster
That Renault has quite the badonkadonk
12/04, 12:55 PM
posted by:
Borat
The population of France is about 60 millions and US 300. If we would to substitute domestic industry according to population counts we would helped them to a tune of 7.5-8 billion dollars (for all 3). They are asking more then 25 billions till March of 2009. Also, we already have incentives of more then $1300 for purchase of fuel efficient cars.
We, the people, are taxed for salaries to government employees. If those UAW members want to be part of government dole, all they have to do is to apply for government work and pass some tests. How much you think government employee makes without college degree who can only screw nuts?
12/04, 1:13 PM
posted by:
Borat
not substitute – subsidize. excitement of argument
12/04, 1:53 PM
posted by:
yarddog82abn
mayer_ray_nagin……
It’s the French… what do you expect… Wi…
12/04, 3:45 PM
posted by:
sprockkets
While you are right mayor, even with a good economy, the big three would be near dead while others may be just struggling as usual. You think Chrysler with perhaps back in 2007 had 14 billion in equity but with 12 billion in health care costs alone, and after what it owed had negative equity, would survive even a healthy economy?
Btw, it was worth 36 billion to Daimler when they got them in 1998.
12/04, 6:18 PM
posted by:
Get Real
Where in the world is France going to get 33 Billion Dollars ????