France considering stimulus package

PARIS, Dec. 19 (UPI) -- The French government is considering an economic stimulus package for 2009 to soften the effects of a recession, a top government official said.

President Nicolas Sarkozy's Chief of Staff Claude Gueant said the government would consider a stimulus package "if needed," the Financial Times reported Friday.

"Further measures would be taken, if needed," he said, although he cautioned, "there is nothing at the moment that tells us we need more."

The National Institute for Statistics and Economic Studies, Insee, said the country's economy declined by 0.8 percent in the fourth quarter, the largest contraction since 1974. Insee projected a 0.4 percent contraction for the first quarter next year.

French finance minister Christine Lagarde said she expected stimulus packages to add 1 percent to the country's gross domestic product next year, predicting growth between 0.2 percent and 0.5 percent. Foreign stimulus measures would add to France's output by 0.5 percent, she said.