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The government has unveiled a €5bn plan to boost the economies of France’s small and medium-sized towns.

Territorial cohesion minister Jacques Mézard said the towns, which are home to almost a quarter of the population (23%), provide 26% of the country’s jobs and have an ‘‘essential role to play in the French economy’’.

A fifth of the fund for the five-year Action cœur de ville campaign will be used to improve housing in rundown towns. The rest will be used to fund a range of schemes including cutting unemployment particularly among young people, boosting healthcare and improving town centres by introducing new rules for out-of-town businesses.