President Nicolas Sarkozy on Thursday said France would set up a new “strategic investment fund” to stop French companies from falling into the hands of foreign “predators”.

The new fund will be operated by Caisse des Dépôts et Consignations – the country’s existing sovereign wealth fund – but would be “more active, more offensive, more mobile” in defence of French industrial assets, Mr Sarkozy said.

“I will not be the French president who wakes up in six months time to see that French industrial groups have passed into other hands,” he said in a speech to business leaders near Annecy, eastern France.

The president’s announcement came only two days after he urged other EU member states to set up their own sovereign wealth funds as a means of protecting European industry at a time when share prices of leading companies were heavily depressed. His proposal met a cool response from other governments.

The new fund will focus on shoring up smaller French companies judged strategically important because of their technology or sector. It could take short-term equity stakes or provide reimbursable loans.

However, Mr Sarkozy did not say how large the fund will be. It will be financed from the CDC’s own resources, but could receive additional public resources if necessary, he said. CDC’s long-term equity investments were valued at €43bn at the end of 2007.

The new investment fund was one of several measures Mr Sarkozy intends to introduce in support of businesses.

He announced a reduction in the taxe professionnelle, a local business tax, that will save companies a €1bn a year from 2011. The tax is one of French industry’s biggest bugbears because it is levied on a company’s fixed assets, deterring new investment.

Mr Sarkozy also wants the Caisse Central de Réassurance, a state-backed “reinsurer of last resort”, to look into whether it could provide credit insurance for companies if the market dries up.

He has also appointed a “credit mediator” to help companies that suddenly find their credit lines withdrawn or terms tightened to negotiate with their banks.