This is the great industrial challenge in the coming years. France (like all of Europe) will be irrigated at high speed. Private and public investment ads have been made since the beginning of the year to increase French military capacities. But with what money? The alerts of defense manufacturers have increased lately. According to them, the war economy is done on credit, orders are very late and the lack of worried visibility.
8 billion euros: this is not a sum to finance a new project, nor a promise to increase the budget … It is a debt. A debt that the Ministry of the Armed Forces will have to pay for the end of the year for 8 billion euros of military equipment already ordered but not yet paid. This is called payment arrears. And according to a Senate shock report, this transfer of charges has doubled in two years.
“Military orders do not arrive”
This is the current paradox: France speaks of the war economy, but the army works on credit. The Military Programming Law provides 413 billion euros until 2030. On paper, it is a historical effort. Except that, in fact, this budget has already begun widely since 99 billion euros will be used to honor the old commitments. Result: there is very little money for new orders.
And he is starting to see yourself. Guillaume Faury, president of Airbus and Gifas (French aeronautical and spatial industries group), recently said:
The same in Thales that deplores orders of almost 60% in the first quarter. And if they arrive, it is the companies that must advance in funds.
The race is thrown and France is not in the lead
Actually, when we fall, we realize that the problem goes far beyond a simple delay in payment. The current economic model no longer works. This is explained in particular by Erik Kirstter, main partner of Roland Berger. According to him, France is landing in its industrial performance in defense. There are too many rigidities, industrial cycles are too long and bureaucracy slows everything. Once a program has been launched, it becomes practically impossible to readjust.
As space has known its revolution with the “new space”, we are moving towards a “new defense”, more agile, faster. But the place just begins. Only it is also a career. Our neighbors accelerate. Germany has increased its 50%defense budget. Poland has doubled it. France is progressing … but only 6%.
Source: BFM TV
