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The Defense Base, the response to French constraints in terms of defense spending

March 28, 2022April 16th

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…

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4 sustainable budget models for the modernization and extension of the armed forces

December 15, 2021December 15, 2021

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…

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Banking services: is the defense industry getting the wrong target?

January 15 2021January 15 2021

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…

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Recovery plan: the missed opportunity for the French authorities for its defense industry and its armies

September 9, 2020December 5, 2020

On September 3, 2020, the French government presented its Recovery Plan to alleviate the economic consequences of the COVID19 crisis, which has hit businesses and jobs hard in the country. If the majority of the industrial and economic sectors are effectively endowed to try to preserve what can be, and transform what must be, no announcement has been made concerning the National Defense industry, yet the the most efficient State investment in terms of job creation and budgetary return for the State. Questioned on the subject, the French authorities considered that the investment plan resulting from the Law of…

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Rafale, FDI Belh @ rra: files accelerate between Paris and Athens

September 2, 2020September 2, 2020

Clearly, the French President, Emmanuel Macron, and his Greek counterpart, Prime Minister Kyriakos Mitsotakis, have decided to go fast and far in terms of military and industrial cooperation between France and Greece, to block the way to the Turkey in the Eastern Mediterranean. Indeed, according to the Greek press, citing concurrent official sources, the two men are to meet on September 10 to sign a defense agreement, but also, if the deadlines are met, the signing of the command for a squadron of Rafale aircraft, as well as, potentially, the command of the two FDI Belh@rra frigates, which until now have been at a standstill. In effect,…

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Is there an indicator to assess and steer Defense efforts in an alliance?

August 7, 2020May 16th

While European economic or agricultural policies have been steered with the help of several indicators allowing a detailed and balanced assessment of Community efforts and objectives, it is surprising that in the field, albeit a strategic one, of the construction of the Europe of the Defence, there are no indicators other than the defense effort in absolute value, and the ratio of this effort to the GDP of each state. Yet these two indicators are both imprecise and ineffective. Thus, they do not take into account the sociological, demographic and economic realities of the countries. In the case of Germany, for example, its endemic low birth rate restricts…

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Europa-Defense unveils its financing offers to support the European defense industry

June 15, 202026th October

While many European states have announced strong measures to protect their defense technology industry from the consequences of the economic crisis linked to the Covid19 pandemic, this support is accompanied by a significant increase in public deficits for the years to come, with the equally significant increase in the sovereign debt of States, and its weight on public finances for many years to come. For France, for example, estimates for the public deficit for 2020 vary between 11,5 and 14% of GDP, and sovereign debt could also grow by more than 10%, due to successive plans to support…

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After the Chinooks, the Air Force also wants to rent Super Puma helicopters

March 11, 2020March 12, 2020

In the fall of 2017, we proposed, with Admiral Pierre-François Forissier, former Chief of Staff of the French Navy, and General Jean-Paul Palomeros, former Chief of Staff of the French Army the Air Force and former Supreme Allied Commander Transformation of NATO, the “Socle Défense” model, which revolved around a global rental offer for army equipment and financing structured around a savings plan. At the time, the military and political authorities had considered that the rental of military equipment could not constitute an applicable solution, as it was too restrictive and too expensive. What is more, the new Military Programming Law in preparation would meet all the expectations of…

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Investment funds, Private Banking: How to boost and safeguard the BITD on national soil?

March 5, 2020April 2th

In a previous article entitled "Can we create a private investment fund to guarantee national sovereignty", we discussed the interest of a private and civic approach, based on a call for savings, to preserve critical technology companies stamped "Defence" on the national territory. This article generated many reactions, on social networks like LinkedIn, and especially during direct contacts. It seems that the hypothesis raised has generated real curiosity, if not, for some, frank support. Recent news, and the veto posed by the Minister Bruno le Maire on the sale of Photonis, indeed reinforces this observation, because…

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Can we create a private investment fund to guarantee national technological sovereignty?

March 3, 2020March 5, 2020

An article published by Anne Drif on the site lesechos.fr published today reports the entry into exclusive negotiations between the investment company Ardian and the American group Teledyne concerning the French group Photonis, one of the largest groups specializing in the design and manufacture of light intensifier tubes for civilian and military night vision equipment. These negotiations take place following long political and industrial procrastination on questions of industrial sovereignty, to ultimately follow the same fate as other technological SMEs that have come under external control, such as the HGH group specializing in infrared optics.

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