The plan the president of France revealed should boost France’s economic growth by 0.6% next year and it is thought that it will also increase the budget deficit to 3.9% of GDP from the 3.1% that has already been predicted.
France has become the latest of European countries to come up with a stimulus package in a bid to take steps against the financial crisis.
The government of France is also going to give companies 11.5bn euros' worth of credits and tax breaks on investment for 2009.
France is not actually experiencing a recession just yet, but the forecast is looking grim.
French unemployment has risen to 7.7% in the three months to the end of September, and the total of people out of work is among the highest in Europe. It is expected to increase to more than 8% in 2009.
The French car industry has experienced a serious drop in sales causing Renault and Peugeot to make thousands of job cuts.
