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Prime Minister announces 1,000 public works projects, unemployment rises

Article published on the 2009-02-02 Latest update 2009-02-02 14:34 TU

Francois Fillon (2nd from right) at the government ministers meeting in Lyon(Photo: Reuters)

Francois Fillon (2nd from right) at the government ministers meeting in Lyon
(Photo: Reuters)

The French government on revealed 1,000 projects that will be part of the 26 billion euro economic stimulus package proposed by President Nicolas Sarkozy in December and approved by Parliament last week. This comes as unemployment figures for December show a 45,000 more people without jobs at the end of 2008

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"Our revival plan enters its concrete stage," said Fillon, after a ministerial meeting in Lyon. "After the time for announcements, after the time decisions, now it is time for action."

Eleven billion, or more than a third of the 26 billion euro package, will go to companies who have been affected by the crisis. Four billion will be invested directly by public companies.

The remaining 11 billion will go into projects directly financed by the state, including 870 million euros for 149 infrastructure and transportation projects, and 731 million to universities and research institutions.

According to Fillon, these public works will create jobs which are needed more than ever, according to the latest unemployment figures.

Finance Minister Christine Lagarde announced Monday that about 45,000 more people were seeking employment benefits in December, due in part to the collapse in industrial production in November and December. Official numbers are delayed a few days because government statisticians participated in last Thursday’s general strike.

There are now 2.11 million unemployed people in France, or about eight per cent of the population. The European Commission predicts it will rise to 9.8 per cent by the end of the year.

The stimulus program will fund projects to start in 2009. If they do not start by the end of the year, the lose funding. Some of the 1,000 projects include:

- 1,740 million euros for transportation, including 150 million for general maintenance and renovation of the rail network;

- 1,406 million euros for universities and research institutions. Example: 3 million towards the restructuring of the Le Bel chemistry institute in Strasbourg;

- 456 million euros for the city of Nancy for urban renewal and housing projects;

- 320 million euros for national road and highway maintenance;

- 180 million euros for cultural institutions, including 5 million euros towards the transformation of the national museum of traditional and popular art in Marseille into a Museum of European and Mediterranean civilizations, to open in 2013, and 1.97 million towards restoring the roof ornaments on the nave and northern transepts of Notre Dame cathedral in Paris;

- 162 million euros to build 33,2000 units of social housing in the Rhone-Alpes, Midi-Pyrenees, Aquitaine, Nord-Pas de Calais and Bretagne regions;

- 136 million euros for justice and defence buildings and structures, including 1.5 million to improve workspaces and security at the Auxerre courthouse and 7.7 million to replace a dock gate in Toulon.

According to the Minister for Economic Recover, Patrick Devedjian, about 10 billion of the 26 billion euros will be spent "as of this week".