Naturally it is not what this State guarantee

Protect the use of the French, their economies and their taxes. "By yesterday, revealing details of its anti-crisis plan, at the end of a Council of outstanding Ministers, the President of the Republic is is wanted reassuring. The Government will assume its responsibilities "by continuing to tell the truth to the French", said Nicolas Sarkozy. "The greatest risk today is not in the daring but in immobility", he explained: "by providing the guarantee of the State, we hope not to have to bear the French the exorbitant costs that would be a failure of the entire banking system."

These precautions are taken, the head of State chose several new initiatives. As was the agreement to rescue found Sunday evening at the Elysee Palace between the fifteen countries of the euro area, both companies will be put in place in France by the end of the week, which will be managed in association with the Parliament. A draft amending finance law was adopted to that effect by the Government, yesterday. It will be examined today at the National Assembly this morning in the Finance Committee, this afternoon in the Chamber and the Senate tomorrow.

Reboot the pump of the credit

The first company will be designed to bring the guarantee of the State "to borrowing that banks need to refinance themselves." The idea is to reboot the pump of the credit in a logic of "window", noted the economy Minister, Christine Lagarde. Clear, the State will replace the Central Bank by becoming a lender, until the end of the year 2009, the institutions requesting. A mechanism similar to that adopted by the United Kingdom but different from that of the Germany, where the State decided to guarantee all of interbank lending. France, the total stock of the amounts involved will be capped at EUR 320 billion and repayment times can go up to five years. "Naturally, it is not what this State guarantee (...), which engages the French money, to be granted without consideration", said Nicolas Sarkozy: the guarantee will play that failure of the Bank, it will in any event "pay at a normal price of the market" and banks borrowers will have to present solvency criteria for it.

The second body is none other than Corporation (EPPS) State evoked the week taken by the Prime Minister, François Fillon last. Formed initially for the rescue of Dexia, this company will be to "provide own funds to institutions that will need to develop their activities", within the total limit of EUR 40 billion. The mechanism will operate either by temporary participation taken to the capital, in form of shares, quasi-equity as "conditional titles" provision. "The State leave no banking institution to fail", assured the President of the Republic. Here also, the window logic will prevail: received this morning at the Elysee Palace, banking groups will have to occur as required.

"Refounding" capitalism

In the end, billions of euros mentioned are this theoretical stage. Since Nicolas Sarkozy made "reasonable bet" that by bringing all these guarantees, the State will not have to play. However, when calm will be back, "I take commitment before the French" that the current crisis will not remain without consequences", he pledged, calling once again for"refounding"capitalism.

A goal that the President of the Socialist Group in the National Assembly, Jean-Marc Ayrault, does not wish to see neglected. "I can't imagine to vote against this draft rescue", he explained yesterday, but "should not be as if nothing happened". "This machine is ill," added, for its part, the Secretary General of the CGT, Bernard Thibault. "We would prefer that the manner in which public power can intervene to help productive investment, put the social in the management what companies."