Funds French sovereign will be operational as of the next month. Its aim is to protect the great groups in difficulty and to help with the development of SME by the means of investments. But its low size is likely to be a barrier so that it fills its objectives

Nicolas Sarkozy announced, Thursday, November 20, the strategic creation of the Funds of French investment at the time of his inspection to the factory, subcontractor in aeronautics and future first recipient of the .

20 billion euros

Equipped with 20 billion euros, including 6 billion cash reserves immediately, the will be operational the next month. The 14 additional billion will correspond to financial securities. The main objective of this funds sovereign is to invest in the great French groups in order to protect them from possible hostile shares coming from abroad. It will also invest in SME to help them to develop. The one fears a strong fall of the investments of the banks, touched by the financial crisis, in the national companies.

Economic development of the nation

The Funds strategic of investment will be financed with parity by equities of the Case of the depositions and the consignments and by the debt of the State. The is a group public, placed under the control of Parliament but independent of the executive, which invests in the long run with the service of the general interest and the economic development of the country. It is present in the capital of many firms of the CAC 40. The will take the form of a public limit company, subsidiary of the , whose State will be a minority shareholder. No gate is closed with the future presence of other investors, including foreign sovereign funds “transparent” according to the words of Nicolas Sarkozy. The will however mainly remain controlled by the Case of the depositions.

Funds dwarf sovereign

The difference in size between the French funds strategic, equipped with 20 billion euros, and its foreign counterparts pleasing to put some questions as for the feasibility of the investments provided for by the . For example, the funds sovereign of Abu Dhabi weighs 875 billion dollars thanks to the oil incomes and the Chinese funds is considered at 200 billion, financed by strong exports of the country. Without oil and with a trade balance in deficit, France turned towards the debt for the financing of the . This last could thus be restricted with an objective economically defensive, i.e. the rescue of companies in difficulty, by leaving side the investments provided for in the groups under development. Currently in crisis, the car should be the first sector to obtain a massive aid on behalf of the . Fernandez