France jump-starts electric car search

France is to pump €329m of state money into the development of electric cars, President Nicolas Sarkozy announced today.

During a visit to the Paris Car Show he said the money will be “exclusively for the research and development of non-polluting vehicles” over fours years.

The money will come from funds already earmarked for environmental projects.

Mr Sarkozy said he will propose that other European countries encourage European Investment Bank loans to car makers for developing lower emission vehicles.

His comments came as French carmaker Renault and Electrite de France agreed to jointly develop infrastructure needed to recharge electric vehicles, allowing a vehicle launch in 2011.