Introduction to European Defense
France could be central when it comes to making the defense sector in Europe autonomous. But the country has to overcome hurdles – and should not do it alone, experts warn. French President Emmanuel Macron already did what he described as "strategic autonomy" in 2017. "When it comes to defense, our goal should be autonomous in addition to NATO," he said during a speech at Sorbonne University in Paris.
Waking up in the Middle of New Global Realities
The way of thinking has changed eight years later. Russia has been entering Ukraine for three years. Donald Trump has recently been elected as US President for a second term. He is firmly convinced that his country should no longer be the guarantee of the security of Europe. The EU reacted to the new geopolitical reality with a massive rearmament drive. Several EU countries plan to increase their national defense spending – including Spain, Italy, and France.
Increased Defense Spending
French President Macron has announced that a further 6.5 billion euros will be invested in defense in 2026 and 2027, whereby the country’s defense budget will be transferred to 64 billion euros by the end of its term in 2027. This would mean that the defense budget between 2017, when Macron was first elected, was doubled in 2027. Fanny Coulomb, lecturer at the French University Sciences PO in Grenoble, says that the 4,500 defense companies in the country, which employ around 200,000 people, are the backbone of the continent defense sector.
France’s Defense Sector
"France has players in all segments of the sector. In contrast to some other countries, we have confirmed these skills since the 1960s," Coulomb, who specializes in the defense economy, said. "We reduced our costs after the end of the Cold War in the nineties, but the terrorist attacks on the World Trade Center in New York and the subsequent war against terror are reversed," she said. French soldiers still know how to lead a war after the missions in Libya and in the Sahel region.
Maintaining a "War Culture"
Sylvie Matelly, another defense expert, believes that all of this has contributed to maintaining a certain "war culture" in French society. "We have to be able to understand the type of threat to know which weapons are necessary," she said. "Paris has kept this capacity for military analysis in contrast to countries like Germany." She also said that France is a forerunner in relation to system and systems engineering.
High-Tech Products
According to Matelly, this includes, for example, high-tech products such as the French Rafale Fighter Jets or the Charles de Gaulle Aircraft Carrier. "In the meantime, we have drastically reduced our production of light weapons and ammunition. We thought it would be easy to start them again because these products are less complex," she added. France’s fleet of military aircraft carriers such as the Charles de Gaulle are skills that no other country has in the EU.
Hurdles to Restart or Increase Military Production
But there are hurdles to restart or increase military production. "We need large amounts of raw materials that are difficult to get, especially since our sanctions against the important mineral supplier Russia after his invasion of Ukraine," said Coulomb. "In addition, we urgently need to train more engineers and specialists, as our industrial sectors have steadily declined in recent decades." And money could be a problem. France fights with high public debts and has to drastically reduce its deficit, which is expected to exceed 5% this year.
Financial Support
The government has therefore announced that the BPIFRANCE public investment bank will start a defense fund. Other financial products are discussed to grasp the savings of the French citizens. The shortage of agency defense based in Paris expects more influx this year. Since its launch of 2021, the investor network, which specializes in the defense sector, has injected a total of almost 2 million euros.
Increased Investor Interest
The conflict between Donald Trump and Ukraine’s Volodymyr Zelenskyy in the White House at the end of February was a "game changer", says Francois Mattens, co-founder and vice president of Defense Angels. This meeting ended without the planned signing of a raw material and increased the fears that the United States could provide Ukraine military support. Washington support was resumed after a short break. Mattens remembered the event and said that many investors "who used to hesitate, have called me since then and said they would like to continue their investment".
Role of Startups
For him, this interest could play further proof of the crucial roles startups. "We need innovation and state-of-the-art technology in the defense sector. Dynamic startups are more suitable to achieve this than large, inert groups." Cailabs has been able to confirm an increased interest in investor since the conflict in the White House. The startup based in Rennes, France, produces laser-based devices that offer internet and safe communication lines-competing products for the American billionaire Elon Musk’s Starlink satellite dishes.
Europe’s Defense Sector
The Kayrros based in Paris recently signed its first defense contracts. The startup uses artificial intelligence to analyze changes in satellite images. These changes could soon include troop movements. "France will play an important role in terms of space technology because it has a mini-Silicon Valley and many excellent research institutions in this area," said Kayrros co-founder Antoine Halff. But none of that means that France should play a lonely hand, experts seem to agree.
Collaboration with Other Countries
And Delphine Deschaux-Dutard, political scientist and deputy director of the Center for Research for International Security and European Cooperation at Grenoble University, has to find the right tone. It should not believe that France will be the "new global defense leader" who will replace the United States, "she said because the establishment of a strong European defense sector was all about working with other countries such as Germany or Italy. "We need European champions to achieve scale effects. France has to be diplomatic and do not come across too haughty."
