For the issue of funding many tracks are studied

The contours of the French sovereign funds are emerging. It will not have 100 billion euros, as some members of the Government have suggested, but probably much less: several sources suggest a range of "10 to 20 billion euros. Discussions are underway between the Caisse des Dépôts et Consignations, which will manage the Fund under the supervision of the Parliament, and the Elysee, Bercy and Matignon. The CDC is supported by Morgan Stanley and Société Générale, the State by McKinsey.

Nicolas Sarkozy, the President of the Republic, should present itself in the days to come the ambitions of this "strategic national investment fund" which he announced the creation in Annecy on 23 October. A set of scenarios has been proposed by the CDC to public authorities. Michel Bouvard and Augustin de Romanet, the Chairman of the Supervisory Board and the Director General of the public establishment, went to present them the week passed to the Prime Minister, François Fillon. "The contours of the Fund will be arrested within 48 hours," said a source in the Government, to make it operational by the end of the year.

For status, two models are envisaged: that of a fund managed by the Fund for the account of the State or of a subsidiary of the Caisse, with a status of anonymous society. The second would currently hold the rope. In any case, the Fund will be led by a representative of the Fund, or by the Director-General himself. It cannot be managed by a representative of the State. "It should not state appear in control, without which the device may be re-qualified in debt maastrichienne," note a close to the record.

For the issue of funding, many tracks are studied. The Fund will be agreed by the own resources of the CDC. But these are currently limited, the contribution to the recapitalisation of Dexia for EUR 2 billion and the decrease in equity markets with significantly reduced its room for manoeuvre. And if the Fund was ready to achieve this new mission, it does not questioning its other missions of general interest, or lose its "aaa" rating Fund saving funds that manage such A booklet will thus excluded from the investment fund, and the pension reserve fund.

"Treasury is very prudent."

To agree financing, private investors could also contribute. Augustin de Romanet was recently in the Gulf to meet other sovereign wealth funds to finalize the creation of a "long term investors club". Some may make their contribution. Finally, the Fund may borrow on the markets with the benefit of the "AAA" of public institution: the debt should turn around 25 of its total assets. "Treasury is very prudent on the assets to make, it is not a Fund too widely would be a"shoot - to crime", which would take too many risks," said one observer. Treasury does also not necessarily transfer to the Fund, which is not in its scope, assets he today management.

So question is which assets of the State, including those of the Agency of the interests of the State (EPA), could be made. Only minority shareholdings, traded, appear to be eligible. Certainty, 33.4 participation in the building of the Atlantic, via a capital increase of EUR 110 million, will be part. This bailout has been presented as the model of investment of the Fund. Nicolas Sarkozy had told Annecy will stabilize the share of major industrial groups threatened by "predators", and enter in the capital of technology strategic businesses that they hold. To help the SMEs and SMIs, DCC companies, France investment and Oséo should be part of the device.