Manufacturers welcome the military programming law (LPM) 2024-2030, which proposes to dedicate a total budget of 413,000 million euros to defense to modernize and better equip armies, but… there is a but.
On Wednesday, during a Senate Defense Committee hearing, Marc Darmon (Chairman of Gicat and Deputy CEO of Thales), Pierre-Eric Pommelet (Chairman of Gican and CEO of Naval Group) and Guillaume Faury (Chairman of Gicas and general director of Aribus Defense & Space), launched an alert on article 24 of the LPM that proposes to constitute weapons stocks. This sensitive point was raised by two senators.
“The war brought a reality about the cost of war. We are concerned. How to adapt the industrial tool?” Senator Olivier Cigolotti of Haute-Loire (Union Center) asked business leaders.
Potentially “toxic” regulations
The heads of the three representative bodies of the BITD (Defense Industrial and Technological Base) admit their concern. They consider that this measure is industrially complex, economically expensive and could even have consequences for exports, which for these manufacturers represents an important part of their activity.
The constitution of stocks raises questions: what will be the duration of the mobilization, what materials will be treated, where should they be stored, what will be the cost? “Answers will have to be given on these points”, asks Guillaume Faury, who considers that this regulation is potentially “toxic”.
Involve industrialists in drafting decrees
Pierre-Eric Pommelet calls for “the industry to partner with the implementation conditions. We must know upstream what to expect.”
To comply with this restriction imposed by the “war economy”, it will be necessary to produce more, faster and at the best price. The ambition to build up substantial and adequate reserves in case of high intensity conflict is necessary, but is it feasible?
The consequence of an impossibility or of too long a delay in its creation could turn against the French industrialists. In his conception of the war economy, Sébastien Lecornu, Minister of the Armed Forces, recalled that it will require the armies to equip themselves quickly and, if necessary, buy “off the shelf” through imports if necessary.
the project of military programming law, which provides for an endowment of 413,000 million euros for seven years for the armies, will be examined in the chamber of the National Assembly from May 22 and for two weeks. The executive wants the definitive approval in mid-July by Parliament of this budget text that covers the period 2024-2030, with annual increases described as “unprecedented”.
Source: BFM TV
