As is most often the case when designing a military programming law, two critical constraints are facing each other today between the Ministry of Finance and the Ministry of the Armed Forces in order to design the budgetary trajectory which will underpin the next Military Programming Law which will frame the French defense effort between 2023 and 2029. For the Defense Staff, investment needs have been estimated at around €435 billion over this entire period, in order to enable the French Armed Forces to regain operational capabilities compatible with the evolution of the threat, in particular in the field of High Intensity engagement. For…Read the article
Tag: Positive Valuation Defense
The Defense Base, the response to French constraints in terms of defense spending
In November 2018, following an article by Michel Cabirol for the economic site La Tribune, the Socle Défense project had briefly attracted some media and political attention, to the point of being the subject of a subject in the 20h of France 2. While the Strategic Review and the Military Programming Law were in preparation, this project proposed to rely on a new financing architecture using savings and a model of leasing defense equipment, making it possible to increase defense investments above 2,65% of GDP, the threshold defined by the Defense Base to enable France to…Read the article
Why should France aim for a defense effort of 3% of GDP? and how to achieve it?
Although treated in a relatively superficial way until today, defense issues are beginning to interfere in the French presidential campaign, and several candidates have already declared their intention to increase the budget of the Armed Forces towards a threshold equivalent to 3% of GDP. Other candidates, declared or not, if they also believe that the defense effort must grow in the years to come, wonder about the sustainability of this effort, as well as about its geopolitical interest. However, as we will see in this analysis, and even if it is only very rarely addressed, the objective of a defense effort of 3% of GDP by…Read the article
4 sustainable budget models for the modernization and extension of the armed forces
In a surprisingly discreet media environment, several major crises that could potentially evolve into armed conflict between great powers are unfolding simultaneously on the planet, whether it is the crisis between Ukraine and Russia potentially involving NATO, the between Israel and Iran about the latter's nuclear program, or the crisis between Beijing and Taiwan, each of them bears the beginnings of a large-scale international conflict that could involve Europe, and France in particular . In this context, it appears that the means available to the French Armed Forces today are quantitatively insufficient and qualitatively unsuitable to deal with it. Indeed, the…Read the article
Does the Euro-fundamentalism of the Ministry of the Armed Forces harm the equipment capacities of the Armies?
For nearly a decade, the Ministry of Defense, which has become the Ministry of the Armed Forces, and the Directorate General for Armaments, which oversees all industrial programs for the Armed Forces, have almost systematically given preference to a European vision of Defense programs. . Thus, during his last hearing, the General Delegate for Armaments, Joel Barre, ruled out the possibility of giving preference to Dassault Aviation's Falcon X for the replacement of the Atlantic 2 of Patrouille Maritime, if the MAWS program were to have to be done without Germany (which has just ordered 5 American P-8A Poseidons to replace its oldest P-3Cs), arguing that it…Read the article
The Operational Buffer, an alternative to strengthen the Armies and the Defense Industry
Faced with the rapid upheavals affecting the geostrategic balances in the world, the French armies, like the national defense industry, face a complementary problem but without an obvious solution. Indeed, the armies keep repeating, more and more audibly, that they lack means, and in particular heavy means and manpower, to carry out their missions in a context where high-intensity engagements could once again become possible, even becoming the norm. At the same time, the French Defense industrial and technological base, or BITD, although it currently has relatively sustained activity, clearly lacks medium-term visibility, but…Read the article
No, the Egyptian Rafale contract does not threaten French taxpayers
Since the announcement of the signing of a new contract for the acquisition of 30 Rafale aircraft by Egypt for €4 billion, a misunderstanding has spread on social networks, based in part on a misinterpretation of the situation by certain French media and by the AFP, according to which this contract could ultimately threaten French taxpayers, since the French State has guaranteed 85% of the amount borrowed by Cairo from French banks in a 10-year loan to fund the operation. As we will see in this article, not only is there no objective reason to anticipate a payment default by…Read the article
The 7 challenges Defending the 2022 Presidential in France
Defense issues had been pushed into the background during the previous French presidential election in 2017. The majority of candidates had simply committed to a spending target of 2% at the end of the five-year term, and had striven to debate subjects without real foundation, such as the return to conscription, even though the soldiers themselves constantly warned about the unrealistic aspect of the proposals put forward. Fortunately, and to the surprise of many, the elected president, Emmanuel Macron, respected his commitments by enforcing a Military Programming Law (LPM) allowing the Armies, if not to rebuild their capacities, throughout…Read the article
The 5 strategic challenges of the French Defense Industry Supply Chain
For the general public, the French Defense Industry boils down to several well-known major players, such as Dassault Aviation, Thales or Naval Group. However, these large companies only represent a part of the National Defense Industrial and Technological Base, or BITD, which although essential, would have great difficulty in establishing itself in France as well as for export without the network of sub- dense and very competent dealing that the Defense Supply Chain represents. However, today, between the effects of the Covid-19 crisis, the difficulties in finding a banking partner or certain unfavorable arbitrations linked to international cooperation commitments, a significant part of this Supply Chain...Read the article
Banking services: is the defense industry getting the wrong target?
For several years, companies with a Defense activity have encountered more and more difficulties in obtaining support from French and European banks. Even basic services, such as investment credits, cash lines, or documentary credits, are refused to them, on the pretext of the sensitivity of the transactions, and the potential consequences on the brand image of the banks if they were to be called into question in arms markets. In an attempt to meet this need, GICAT, an association bringing together land armament professionals in France, presented to the French authorities a project aimed at creating a…Read the article