Sarkozy Names Minister For French Economic Plan

Sarkozy announced the package on Thursday, targeting investment projects rather than consumers,and created a new position in the government.

French President Nicolas Sarkozy on Friday appointed Patrick Devedjian, the outgoing head of the ruling UMP party, as minister in charge of implementing a $26 billion euro ($33 billion) stimulus plan to boost the economy.

to ensure the programme was enacted.

"The president of the Republic has named Patrick Devedjian as minister in charge of the implementation of the stimulus plan, reporting to the prime minister," a statement from Sarkozy's office said.

The stimulus plan relates mainly to 2009 and it is not clear how long the position will be necessary.

France is the latest European Union country to throw open state coffers to try to temper a sharp economic downturn and the government predicted that the measures would boost gross domestic product by 0.6 percentage points in 2009.

With the economy expected to tip into recession, the key car and housing sectors will get almost 3 billion euros of aid, infrastructure projects will be accelerated, small firms will be rewarded for new hiring and investment will be encouraged.

Devedjian, a lawyer by training, is one of Sarkozy's faithful allies. A member of several governments under former President Jacques Chirac, he sided with Sarkozy in fierce power struggles within the French right over who would succeed Chirac.

Many in France were surprised when Sarkozy did not give Devedjian a ministerial post when he came to power in May 2007.

Devedjian made a bitter quip about it, commenting that several figures from the left were chosen as "openness" ministers.

"I'm in favour of an 'openness' government, especially open to Sarkozy followers," he said at the time.

Instead, he took the head of the UMP party and of the Hauts de Seine local government area near Paris, succeeding Sarkozy.

The UMP party did not say who would succeed Devedjian as general secretary.