The French government will convert a 3 billion euro loan extended to the group last year into a hybrid instrument and commit up to an additional 1 billion euros to a planned share issue, raising its stake in Air France-KLM to almost 30%.
"This will make the state Air France's biggest shareholder," French Finance Minister Bruno Le Maire said on France Inter radio, calling the move a "sign of commitment" to the airline and its French jobs.
Gold is seen as a hedge against rising inflation, but firmer Treasury yields, which translate into a higher opportunity cost for holding bullion, have challenged that status.
The minister had already told Sunday paper JDD that economic growth was now likely to come in at 5.0 percent this year and not 6.0 percent as believed earlier.
The new administration of US President Joe Biden is already making payments to households under a new $1.9 trillion COVID-19 relief package and plans to plough $2.3 trillion into infrastructure investments to fire up the world's biggest economy.
"The best response to US ambition isn't to fight it. It is to match it. Europe needs to challenge itself like America does," he added.
The airline group, which received a 10.4 billion-euro ($12.3 billion) bailout to weather the coronavirus crisis last year, plans to convert 4 billion euros in French and Dutch government loans into hybrid "quasi-equity".
"We are nearing a deal," Finance Minister Bruno Le Maire said on France Info radio, predicting a final agreement within "a matter of days".
Like many countries, France has seen a surge in savings during the coronavirus crisis due to various restrictions on movement that prevented people from spending in bars, restaurants, cultural venues and on trips.
The central bank estimated last month that households had built savings in excess of what could be expected under normal circumstances of up 120 billion euros ($144.4 billion) last year.
Le Maire said talks on rewriting decades-old rules on cross-border taxation needed to wrap up by summer and that a new allocation of International Monetary Fund (IMF) special drawing rights, along with a new G20 framework to ease poor countries' debt, were needed.
Le Maire also told reporters at a briefing that he wanted any future remedies for Air France to be of a sustainable nature for the airline.
Earlier this month, Air France and its pilot unions had protested against EU demands that the airline give up takeoff and landing slots at its Paris base in return for government aid.
The election of Marine Le Pen , we all know that is a possibility. It is a political possibility and it must be opposed...I hope that Emmanuel Macron runs and is re-elected.
Opinion polls indicate she will be Macron's main challenger in the election next year.
Veolia said on Sunday it was launching an offer for all of Suez, valuing the group at 11.3 billion euros ($13.60 billion), after dropping efforts to win the backing of the waste and water management company's board.
When Trump leaves office, he will leave behind a nation deeply divided over his brash brand of populist politics and economic nationalism that he promised would 'Make America Great Again'.
"Having this kind of event should be a kind of alarm for all European and all Western democracies."
The World Trade Organization ruled Tuesday that Brussels could impose tariffs worth $4.0 billion on US imports in retaliation for illegal American aid to Boeing.