The French Government has reportedly planned to unveil an emergency fund worth up to €10bn for the aerospace industry.

Reuters cited French financial daily newspaper Les Echos as reporting that the government is expected to unveil the fund this week, which includes an expected €1bn investment fund.

Commenting on whether the €1bn fund was being conceived as part of the crisis package, French Transport Minister Jean-Baptiste Djebbari was quoted by news channel LCI as saying: “For one of the funds, that is more or less the target.”

The minister did not reveal details such as ‘what the fund would cover or how much other funds might be worth’. He added that the crisis plan is targeted to safeguard aerospace firms from takeovers by foreign companies.

Djebbari told that Chinese firms ‘are making offers at a time when they (French firms) are in difficulty’.

The crisis plan reportedly includes loan guarantees and assistance for research and development.

However, the country’s economy ministry refused to comment on the development, noted the news agency.

Earlier last month, the European Commission (EC) approved a €7bn French guarantee and shareholder loan to Air France as the coronavirus (Covid-19) pandemic severely affects airlines’ operations.

According to EU state aid rules, the loan is to provide liquidity support to the company.