State aid to business exceeds education budget

24th January 2007, Comments 0 comments

PARIS, Jan 24, 2007 (AFP) - French state support to businesses in 2005 amounted to 65 billion euros (85 billion dollars), nearly twice as much as the defence budget and than spending on education, a press report said on Wednesday.

PARIS, Jan 24, 2007 (AFP) - French state support to businesses in 2005 amounted to 65 billion euros (85 billion dollars), nearly twice as much as the defence budget and than spending on education, a press report said on Wednesday.

A government study cited by Le Figaro newspaper said that public funding for businesses represented 4.0 percent of gross domectic product in 2005.

State aid to enterprises reperesents "a little more than total for national education, nearly two times the defense budget and about the same order of magnitude as hospital spending", said the report, drafted by the inspectors from the ministries of finance, social affairs and from the administration.

The state budget is far and away the largest contribuor, with 57 billion euros, or 949 euros per inhabitant, followed local communities, 6.0 billion euros, and European Union funds, 335 million euros.

In another report, the newspaper La Tribune said the defence ministry could be short of 40 billion to 70 billion euros needed for military equipment between now and 2015.

The paper cited prpojections from the ministry in 2005 showing that about 30 billion euros would have to be saved between now and 2015.

Copyright AFP

Subject: French News

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