French President Nicolas Sarkozy on Thursday announced a plan to create a sovereign wealth fund as part of the country's efforts to overcome the global financial turmoil.
The fund is designed to "intervene massively" to protect strategically important French enterprises threatened by the global credit crunch, said Sarkozy.
The president noted that the fund would prevent those companies from falling into the hands of foreign competitors.
"It's not about shoring up failing businesses, but stabilizing the capital of firms with knowledge and key technologies that could fall victim to predators seeking to exploit a momentary market undervaluation," he said.
Sarkozy said he would urge parliament to adopt the plan as soon as possible, adding that the fund is expected to be operational by the end of the year.
According to a report by the French daily Le Figaro, the 200 billion euro (256 billion U.S. dollar) fund will be composed of the existing state intervention funds and stakes in public enterprises.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article