A part of the success of the bank that James Rothschild built was through the funding of loans to European governments. This sector of banking began to decline during the latter part of the 19th century following the introduction of new methods for government financing. By 1980, the Paris business employed about 2,000 people and had an annual turnover of 26 billion francs ($5 billion in the currency rates of 1980). But then the Paris business suffered a near death blow in 1981 when the Socialist government of François Mitterrand nationalized and renamed it Compagnie Européenne de Banque. In 1987 a successor company called Rothschild & Cie Banque was created by David René de Rothschild who was joined by his half-brother Edouard de Rothschild and cousin Eric de Rothschild. Capitalized at only $1 million and starting with just three employees, they soon built their tiny investment bank into a major competitor in France and continental Europe. In 2003, following the retirement of Sir Evelyn de Rothschild as head of N M Rothschild & Sons of London, the English and French firms merged into the Group Rothschild under the leadership of David René de Rothschild. In 2006, the French banking division expanded into Brussels, Belgium.