March 9, 2010

Crisis-hit French farmers receive additional loan subsidies

French President Nicolas Sarkozy announced Saturday an extra EUR800 million in subsidised loans for farmers hit by the financial crisis, taking to EUR1.8 billion a package for the sector.

Sarkozy in October announced EUR1 billion in aid for embattled French farmers, whose revenues were slashed by around a third last year. Dairy farmers saw their incomes halved.

The French leader also announced an extra EUR50 million in aid for badly indebted farmers, taking the total amount to EUR100 million. In addition, he pledged to take moves to ensure that markets are better regulated.

"From November, France will head the G20. We will take the initiative to promote real market regulations for primary agricultural goods to prevent growing speculation," he said.

Earlier this week, Sarkozy launched a drive to reverse an accelerating decline in French industry, protect jobs and raise manufactured output by 25% over five years.

The French leader said EUR6.5 billion would be assigned to support research and investment from funds raised by a special bond - "the grand national loan" - he intends to issue later this year.