France's newspaper industry is in crises and President Nicholas Sarkozy is launching talks to look into alleviating the situation. There will be a two month industry consultation period led by a one of Sarkozy's former Elysee advisers.

However, unions are reportedly concerned Sarkozy could loosen ownership laws, allowing his television baron friends to buy into the national press. Sarkozy, is known as the "télé-président" due to his media fixation and his close relationship with key figures within the media.

The French press is one of the least profitable in Europe, the daily circulation of all French national papers is just 8 million, which is half that of the UK and one third of Germany. French newspapers' combined turnover fell from €1.145bn (£905 million) in 2000 to €848 million last year.

It also costs more to print a national newspaper in France than in most of its European neighbours due to the Union Le Livre's importance in this sector, it insists on strict working hours and conditions for its members. It is also difficult to buy a newspaper in France because Labyrinthine state controls newspaper kiosks. The press already receive €1.5bn in direct and indirect state each year

Le Monde's editor, Eric Fottorino, has called for Sarkozy to make it easier for the public to buy a copy of a newspaper.

Sarkozy reportedly favours loosening French laws to allow media organisation to own a TV station, a major radio network and a major daily newspaper.

Source: Guardian.co.uk