Big plans

Sarkozy said the package aimed to give France's economy a "much needed boost" during a press conference at the Elysee palace on Monday.

"Today, we must prepare France for the challenges of tomorrow so that our country can fully benefit from the recovery, so that it is stronger, more competitive, so that it creates more jobs," he said.

"This isn't another stimulus plan," Sarkozy added. "This loan won't finance current spending, but only investment that will make the country richer."

Investments "sacrificed"

The French president said investment would focus on higher education, training, research, industry and small businesses as well as new, green technologies like electric cars and renewable energy.

Sarkozy said the quality and resources of French universities had declined dramatically in the past, lamenting that French schools ranked "far behind" top US universities in international ratings.

"We have constantly sacrificed public investments. That is a mistake," he told reporters.

Last year, Sarkozy unveiled a 26-billion-euro stimulus plan aimed at propping up the car industry and funding large-scale infrastructure projects such as new high-speed railway lines.

That came on top of a 20-billion-euro strategic investment fund announced in November to protect French industry, which several governments, including Germany, criticized as "protectionist."

glb/AFP/dpa

Editor: Sonia Phalnikar