[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.