The French have got not obeying any EU laws down to a fine art. Government subsidies for industry is illegal under the EU unfair competition rules.
However:
1. EU grants are available for all manner of development, especially if your proposal has 'eco' in the title. So say Ford, GM, Fiat, VW, BMW and Mercedes, Renault and Peugeot all apply for grants to develop 'eco' friendly electric car technology and also more 'eco' friendly materials for use in the manufacture of motor vehicles. Then the French officials in charge in Brussels will then appraise the proposals to decide which offers the best value for money and then award them to Renault and Peugeot.
2. Regional development grants can be used to entice and keep industries in areas of unemployment. With high unemployment all over France, just take your pick of an industry and area.
3. Governments grants can be available for the development of new technologies with any EU company being able to apply. Just replace EU with Government in item 1 above for the French system.
4. If none of the above apply then the French Government gives the French company the money and will justify it afterwards to the EU. The French Officials at the EU may force the company to pay a token amount back, if there are many complaints about unfair competition from your competitors. Item 4 is particularly effective in an election year if your company has supplied the right sized brown envelopes of the right thickness to the winning parties election campaign.
As you can see everything is above board and transparent in French and EU politics and grants procedures. This is also why the UK gets the least grants, Le Roast Boufs, getting back EU money, Sacre Bleu, we only let them in so they could be the second biggest net contributor to the EU budget, don't make a French EU official choke on his morning coffee and croissants by suggesting any different.
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