[gabaix]

Neither 'diversion of public funds' (I believe you mean embezzlement) nor 'money laundering' would fit the description. This is more akin to 'poor use of public funds', which is also common in the US, and equally frown upon.

[eloisant]

I think the term he's looking for is Embezzlement of Public Funds indeed.

It's not just "poor use of public funds", but illegal use of public funds. For example when a public institution picks a supplier in an illegal manner (i.e. picking a friend instead of respecting the process for a public contract, or using public funds for personal benefits).

[coliveira]

You mean like when US government gives billions of dollars to bankrupt companies? Maybe the French are getting cues from Washington.

[natmaka]

'Embezzlement' seems harsh, 'crony capitalism' (collusion between a business class and the political class) is IMHO the cause here.