French newspapers were already struggling to compete for readers with the Internet and broadcast journalism even before the economic downturn took a bite out of advertising revenue, and several are close to collapse.

In response to the crisis, which some commentators have branded a threat to French democratic debate, the government organised a national conference on the future of the newspaper industry.

"The habit of reading the press takes hold at a very young age," Sarkozy said, presenting the conclusions of several months of talks to an audience of media executives, journalists and officials in Paris.

The president said the newspapers themselves would provide free copies for 18-year-olds, while the state would cover the cost of delivering them to many thousands of homes.

In addition to the free paper scheme, Sarkozy announced plans to double the government's budget for buying advertising in the press, a freeze on the cost of postal distribution and a reduction in payroll taxes for newsagents.

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