Category: Financing solution

How can the evolution of the doctrine of possession of equipment make it possible to extend the format of the armies?

At the end of the 60s and the arrival of electronic systems and the beginnings of on-board electronic systems, military equipment experienced very rapid growth in performance and capacity. At the same time, their costs of acquisition and implementation also experienced a doped increase, far exceeding the increase in military budgets. In an attempt to maintain the formats and above all the operational capacities, the military and industrialists undertook to rely on two characteristics made possible thanks to the contributions of electronics and information technology, namely the versatility of the equipment, and their scalability to extending effective life in…

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Can France increase its defense investments beyond the limits of the LPM 2024-2030?

A few days before its official presentation, the content of the future French Military Programming Law, which will frame the investments of the State in these armies for the next 7 years, is beginning to be increasingly clear. However, beyond the some €400 billion in investments planned over the next 7 years, and the €13 billion in exceptional loans also planned over this period, and although this trajectory represents an increase of €100 billion compared to screw of the previous LPM, many voices have been raised for a few days to regret the arbitrations, and sometimes to criticize the amount judged, not without…

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Neuron, E-MBT, SMX31…: Can we overcome the impasses of the future LPM for research and equipment for armies?

While the General Staff, the Ministry of the Armed Forces and the Elysée Palace are fine-tuning the final details of the future Military Programming Law which will cover the period 2024-2030, numerous more or less official echoes suggest that despite a very sharply increased budget, making it possible to reach a defense effort of nearly 2,3% of GDP in 2030, numerous research and development programs for defense equipment, as well as equipment for the armies, will have to be spread out or even purely and simply ignored, due to budgetary constraints. Indeed, under the joint action of a dramatic under-investment in defense during the 20 years preceding the previous...

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Why would France have any interest in “sponsoring” some of its defense equipment exports?

In 2018, Athens announced the order of 84 modernization kits to bring part of its F-16 C/D Block 52 to the Block 72 standard, so as to improve Greek deterrent capabilities against the rise of air forces and Turkish anti-aircraft. Worth $1,6 billion, this contract provided for the assembly of the new devices in Greece by HAI, and the delivery of all the components by the United States, such as the AESA AN/APG-80 radar, a new electronic warfare suite as well as a new IRST (InfraRed Search and Track), giving these hunters acquired in the 90s, new perfectly modern capabilities.…

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6 recurring but erroneous statements around the SCAF next-generation aircraft program

Announced in 2017 shortly after Emmanuel Macron's arrival at the Elysée for his first term, the SCAF program, for Future Air Combat System, represents one of the two main pillars, along with the MGCS program, of France's ambition -Germany developed on this date to strengthen European strategic autonomy in the field of defense around strategic industrial cooperation between the two countries. Since then, the program has integrated Spain within it, but has above all been marked by growing and increasingly divisive tensions between Paris and Berlin, more particularly between the industrialists of the two countries, in particular around the first and main 7 pillars…

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LPM 2029: Can the budgetary constraints and the needs of the Armies converge? (2/2)

The Defense Base offers an innovative and relevant approach to meet the challenges of financing the defense effort in France in the present context marked by strong budgetary constraints, and the need to modernize and extend the country's military capabilities equally important. In the first part of this article, we presented the structure and the paradigms which underlie this financing approach based on 4 pillars: a financing company carrying out an equipment rental offer for the armies, a financing model based on recourse to savings, a modern analysis of the budgetary efficiency of investments, etc.

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LPM 2029: Can the budgetary constraints and the needs of the Armies converge? (1/2)

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…

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What are the 5 critical issues of the next French Military Programming Law?

The day after the start of the Russian offensive in Ukraine, a majority of French people discovered, or rediscovered, in a very brutal way, the role of the armed forces in ensuring what they had taken for granted for several decades, namely their security. In an attempt to reassure public opinion, and to occupy a media space neglected by politicians against the background of presidential and legislative elections, the French armies then multiplied communications, trying to present a comforting face to the French, in particular by insisting on so-called “high intensity” exercises, a term that also suddenly came up in discussions, including on the sets…

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US Senate votes to reactivate Lend-Lease scheme to support Ukraine

At the beginning of the 30s, the United States chose an international posture of neutrality, responding to an important desire of American public opinion not to allow itself to be dragged into a new European war. From 1939, however, President Roosevelt imposed the Cash and Carry system, allowing Western allies of the United States such as the United Kingdom and France to order military equipment produced by US industry to strengthen their own capabilities. in the face of the rise of the German and Italian armies in Europe, and the Japanese in the Pacific, as long as they are immediately paid in dollars or gold.…

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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…

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