Paris - The French government will establish an investment fund of 20 billion euros (25 billion dollars) to support French companies and protect them from foreign takeovers, President Nicolas Sarkozy announced on Thursday.

Speaking to workers in the central French city of Saint-Julien de Chedon, Sarkozy said the fund is to be managed by the Caisse des Depots, a government financial institution under the control of parliament.

The amount of money committed to the fund was smaller than expected. Originally, the talk was of at least 100 million euros.

Paris - The French government will establish an investment fund of 20 billion euros (25 billion dollars) to support French companies and protect them from foreign takeovers, President Nicolas Sarkozy announced on Thursday.

Speaking to workers in the central French city of Saint-Julien de Chedon, Sarkozy said the "strategic investment fund in the national interest" is to be managed by the Caisse des Depots, a government financial institution under the control of parliament.

Paris - Many classes in French primary and secondary schools were closed Thursday as teachers stayed away from their jobs to protest government plans to cut jobs.

Unions said that one of two secondary-school teachers and some 70 per cent of kindergarten and primary school-teachers were on strike Thursday.

To cut state costs, Education Minister Xavier Darcos has cut 11,200 jobs from the national education system and intends to slash another 13,500 positions next year.

Despite the scope of the job action, Darcos remained defiant on Thursday.

Paris - Reacting to plunging sales because of the economic and financial crisis, French carmaker PSA Peugeot-Citroen said Thursday it would cut another 3,550 jobs.

The move involves 2,700 workers "from all sites and in all group departments," and will be based on voluntary departures, the company said.

Another 850 jobs will be cut at the manufacturer's plant in the western French city of Rennes.

These job cuts are in addition to 15,000 redundancies that have been carried out by the group since 2007, primarily at its French sites.

Paris - French-Dutch airline Air France-KLM said Thursday that profits for the first half of fiscal year 2008-9 slumped because of the economic slowdown and the high cost of fuel.

Operating income fell by 43.9 per cent, to 639 million euros (800 million dollars), in the period ending September 30, the carrier said in a press statement.

Earnings per share plunged by 84 per cent, to 0.66 euros, while turnover stood at 12.983 billion euros, up a modest 4.4 per cent, for the first half of the fiscal year.

Paris - Senior Rwandan politician Rose Kabuye said Thursday that she was not involved in the 1994 assassination of former Rwandan president Juvenal Habyarimana.

"I'm not afraid because I am innocent," she told France 24 television. "When I can explain what really happened, everything will be fine again."