FRANCE: Huge loan to fund universities, research labs

French universities and research labs should get the largest chunk of the 35 billion euros ($52 billion) the government plans to raise through a special loan, members of a panel preparing for the loan said on Monday, writes Emmanuel Jarry for Reuters. President Nicolas Sarkozy announced in June plans to raise a large amount of money to fund forward-looking strategic investments and help France emerge from the economic crisis in a stronger position.

He set up an ad hoc commission presided by two former prime ministers to reflect on the amount that should be raised and what it should be spent on. Members of that commission told Reuters their report called for 16 billion euros to go towards higher education and research.

Of those 16 billion, 10 billion euros would serve to fund endowments for the top five to 10 universities, which would be allowed to use only the interest and not the capital. Such a funding system for public universities does not exist in France at present. The other six billion would go towards buying high-tech research equipment and towards general development of innovative projects.
Full report on the Reuters site