Sarkozy names team to guide French bond issue

PARIS — French President Nicolas Sarkozy assigned a leading conservative and leading Socialist on Monday to figure out how to spend money from an exceptional government bond issue meant to stimulate the recession-hit economy.

Sarkozy named former prime ministers Alain Juppe and Michel Rocard to work out the priorities for the “exceptional investment effort to prepare France’s future.”

Last month Sarkozy announced plans for a bond issue designed to boost investment in the French economy, suffering its worst recession in 30 years.

By choosing two prominent figures from left and right to oversee the spending effort, the conservative Sarkozy appears to be seeking to keep unions at bay amid worker frustration over downturn-linked job losses.

Sarkozy’s office said in a statement that the two ex-premiers will lead a commission that will release its plans for spending the bond money before Nov. 1. The bond will be issued early next year.

France announced a euro26 billion ($35 billion) stimulus plan last year that includes a euro6.5 billion investment program and euro11.5 billion in tax credits and rebates. But France and Germany led the EU in resisting U.S. calls for more, and more coordinated, stimulus spending. Sarkozy has said past stimulus measures — such as pumping liquidity into French banks and providing handouts to the poorest families — need time to work.