The development of electric cars in France is to benefit from £260 million of state money, President Nicolas Sarkozy has announced.
He said the money from funds already earmarked for environmental projects will be "exclusively for the research and development of non-polluting vehicles" over four years.
Mr Sarkozy said he will propose that other European countries encourage European Investment Bank loans to car makers for developing lower emission vehicles.
He was speaking at the Paris Car Show as Renault and Electrite de France agreed to jointly develop infrastructure needed to recharge electric vehicles prior to a planned vehicle launch in 2011.
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