Sarkozy unveils €35bn state aid

FRENCH President Nicolas Sarkozy yesterday unveiled a €35bn (£31bn) “grand loan” the government will take out to fund universities, renewable energy and the digital economy.

Of the total, €22bn will be raised through government borrowing, with the rest coming from bailout money repaid by banks to the French government.

France’s universities are the main beneficiary of the money, with €11bn going towards the construction of up to ten world-class campuses. Research institutes will get €8bn while €5bn will be spent on renewable energy.