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PARIS, Dec 31 (Reuters) - France is ready to pump more aid into the economy on top of a 26 billion euro ($36.4 billion) stimulus package already announced, French President Nicolas Sarkozy said on Wednesday.
In a traditional year-end address to the nation, Sarkozy said France faces many problems next year and promised to introduce more measures to help the economy if needed.
"We face major difficulties in 2009," he said in his televised speech. "We will be pragmatic, watchful, reactive and if we need to do more, we will do so, but maintaining our sang-froid," he added.
The government's stimulus package was announced on Dec. 4. It aims to encourage investment and help certain industries such as carmakers and builders.
Sarkozy said a sovereign fund set up in November to invest in French firms considered strategic would soon start work to "preserve our national fabric."
He said other reforms, including a controversial shake-up of high schools, would not be abandoned during the downturn.
"This crisis is going to give rise to a new world which we will have to prepare ourselves for, working more, investing more and pursuing the reforms which we cannot halt because they are vital for our future," he said.
Sarkozy's sombre address lasted less than 10 minutes, during which he mentioned the word "crisis" nine times.
The French national statistics office INSEE said earlier this month that France was set to suffer a deeper recession than previously thought as exports flagged and plummeting consumer sales hammered the manufacturing sector.
INSEE predicted the euro zone's second-biggest economy would contract by 0.8 percent quarter-on-quarter in the final three months of 2008, and shrink by 0.4 percent in the first quarter of 2009 and by 0.1 percent in the second quarter. (Reporting by Crispian Balmer; Editing by Dan Grebler)