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By Suzanna Kerridge, 13 April 2000 00:30

NEWS French Prime Minister Lionel Jospin has announced a range of measures including FF1bn (£92m) in venture capital to fund innovative start-ups in France. Tax cuts, simplification of administrative procedures and an online portal offering advice, are also among the raft of initiatives. Speaking in Paris, Jospin said: "Encouraging entrepreneurship is one of the priorities for France. It must become less complicated, less expensive and less daunting to set up a company." To help finance start-ups, the government announced it will plough FF1bn from the state bank, CDC, and the European Investment Bank into EDEN - the French government's fund for new businesses. The money will fund up to 30,000 projects with a FF50,000 (£4,600) loan each. Tax breaks for 'business angels' are also part of the financial package aimed at encouraging investors to take more risks in the Net economy. Jospin said the number of companies set up in France each year must be increased. In 1998 only 167,000 new businesses began trading in France and that figure only increased by 3,000 last year. Laurent Fabius, French DTI minister, said: "The 'businesses angels' advise, support the projects and share with the creators of companies their networks and their customers." Under the terms of the proposed measures business angels will receive tax breaks on profits made on investment, provided the money is reinvested into another young company. Jospin urged other European countries to "reduce the times and the cost of constitution of a company, to establish a charter for the small companies, to promote an innovative economy and entrepreneurship".