France is preparing a further economic stimulus plan for 2009, French Finance Minister Christine Lagarde said on Friday.
According to French media reports, the French government is to unveil a planned 26-billion-euro (37 billion U.S. dollars) stimulus package this month to boost business confidence.
"We will do what is necessary," Lagarde was quoted as saying after the cabinet approved the package. "If we have to do more, we will do more." '
She also said that six European Union countries were working on extra measures that would be announced in January.
Lagarde expected the stimulus plan to add 1 percent to France's GDP in 2009 with 0.2 to 0.5 percent of growth.
The National Institute for Statistics and Economic Studies (INSEE) predicted on Friday that the French economy will drop by 0.8 percent in the last quarter of 2008, and will sink into recession next year with a 0.4 percent decline for the first quarter of 2009.
Meanwhile, Natixis SA, the fourth largest investment bank of the country, announced a plan to cut 840 jobs in its investment banking and run down 19 billion euros (27 billion dollars) of risky assets, as part of its restructuring efforts to reduce risk.
Source: Xinhua
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