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Thales, Dassault, Safran … why the political crisis could destabilize investments in the defense

Analysts fear that political instability avoids the increase in military spending.

The possible fall in the Bayroun government and political instability threaten to interrupt the investments in defense, according to several analysts interviewed by CNBC, an American media. The latter fears that this despite the French flagships of armaments such as Thales, Dassault Aviation, Safran and MBDA.

The President of the Republic announced on July 13, wanting to increase military spending by 3,500 million euros in 2026 and 3 billion even in 2027. Emmanuel Macron intended to have doubled the budget dedicated to defense compared to 2017.

“Washing Defense”

Dmitrii Ponomarev, analysis in Vaneck, told CNBC that only Germany seemed to have the necessary budget space for the budget maneuver to increase their military defenses and eventually bring them 5% of GDP, since NATO countries were committed to it.

“The fears of ‘WASHING DEFENSE“, where governments have unrealistic plans for their future military spending or try to assign projects not related to their defense budgets,” said Dmitrii Ponomarev.

Author: Please
Source: BFM TV

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