By Huw Jones

STRASBOURG, France, Dec 16 (Reuters) - French President Nicolas Sarkozy warned on Tuesday that the European Union could turn into an industrial wasteland without government help for manufacturers hit hard by the global financial crisis.

In a debate at the European Parliament wrapping up France's six-month presidency of the EU, Sarkozy won praise for deals he clinched on a climate package, the financial crisis and war in Georgia, although lawmakers jested about his "fairytale" style.

The praise augured well for a final parliamentary green light on Wednesday for the climate-change package, agreed at an EU summit last week.

"We cannot be the only continent in the world that does not support its builders and manufacturers. We have to help our industrial infrastructure," Sarkozy told the assembly.

"Otherwise we are going to see an industrial wasteland."

European car makers deserve help, he said, especially if the United States gives subsidies to its struggling auto sector. France should consider a loan programme helping consumers buy environment-friendly new vehicles, he said.

His statement echoed plans by many EU governments to aid industries, partly with a fiscal boost, which advocates say is needed to lift economies from their worst crisis in decades.

Critics argue such help may undermine strict EU rules on competition and state aid.