The French government is scheduled to unveil a two-year stimulus package worth 100 billion euros on Wednesday evening, hoping to ease the impact of coVID-19 on the French economy by increasing public investment, government subsidies and cutting tax rates by the end of 2022.

Of the 100 billion euros, 35 billion euros would be used to make the French economy more competitive, 30 billion euros would be used to develop clean energy and 25 billion euros would be used to support jobs, government officials disclosed ahead of the announcement, Reuters reported. The package also includes a previously announced 10 billion euro cut in business taxes a year.

French President Emmanuel Macron wants to use the stimulus package to push ahead with his promised business climate plan and to pump money into French industry, construction and transportation to get economic activity back to pre-epidemic levels by the end of 2022.

French Prime Minister Jean-Luc Castell told Luxembourg's Radio and television that he hoped the stimulus package would create 160,000 jobs by 2021. "The first objective of this package is to restart the economy and reduce unemployment."

The French finance ministry had forecast that the economy would suffer its biggest recession since the end of the second world war this year, contracting by as much as 11 per cent.

According to French officials, the transport sector will receive €11 billion, of which €4.7 billion will be devoted to railways and €6 billion to energy efficient building projects, including €4 billion for public buildings and €2 billion for housing.

The government will continue to push the energy mix from fossil fuels to clean energy, including investing 2 billion euros in hydrogen.

Industrial projects will receive €1bn in direct aid, including €600m to move overseas factories to France.

An official said France's stimulus package amounts to 4 percent of its gross domestic product, and no other big European country is currently offering more. The package is three times bigger than France's stimulus package to combat the impact of the global financial crisis nearly a decade ago, AGence France-Presse reported.

The cost of the stimulus package will directly add about 80 billion euros to France's budget deficit, of which 40 billion euros will be offset by European Union subsidies.