Emmanuel Macron summoned major defense firms in France on Friday to boost arms production as the culmination of a week marked by a meeting of over 30 European Chiefs of Staff held in Paris. On Friday, the French President urged Putin to accept a ceasefire in Ukraine and to refrain from further "delaying statements," on the eve of the European leaders' summit via video conference called for Saturday by Prime Minister Keir Starmer
Safran, Thales, Naval Group, Dassault, and KNDS were some of the major firms present at the Friday meeting at the Élysée Palace, which was also attended by representatives of up to 4,000 small and medium-sized companies in the sector. Macron aims to make France the epicenter of European rearmament and has opened the debate on the possible extension of the French nuclear umbrella to European allies (in light of the American withdrawal).
From nuclear submarines to combat aircraft, from missiles to armored vehicles, all sectors of the powerful French arms industry were represented in what is seen as a genuine war effort to address the "geopolitical threats" posed by Vladimir Putin, as Macron himself stated this week.
"France has the capacity to manufacture almost everything needed on the battlefield," emphasized Industry Minister Marc Ferracci. "But the Government wants to rely on manufacturers to increase volumes and address capacity issues."
In Friday's meeting, Macron sought to determine if the industry can increase its production and assess at what pace. Manufacturers, on their part, demanded guarantees following the political crisis of recent months and the recent difficulties in approving the budget.
The French President met with the government's top officials on Thursday to call for the necessary budget adjustments to increase defense spending. France currently allocates the equivalent of 2.1% of its GDP to military expenses, and Macron's goal is to raise that figure to between 3% and 3.5%.
In real terms, the target is to reach an annual budget of 90 billion euros, an increase of over 30 billion compared to what is planned in the current fiscal year. Prime Minister, centrist François Bayrou, has requested a two-month period to make the necessary budget adjustments.
In his address to the nation last week, when he announced the increase in defense spending to counter "the Russian threat," Macron assured the French that "rearmament" would be possible "without raising taxes." Bayrou, for his part, stated that the increase in military spending will not compromise "France's social model."
Defense Minister Sébastien Lecornu acknowledged this week that there is still "a huge gap" to balance the accounts. "The maintenance of the armed forces and the purchase of equipment are the responsibility of public spending," emphasized Lecornu.
Economy Minister Eric Lombard has joined the "war efforts" with his proposal to create a specific Defense account, exempt from taxes and with an interest rate set by the State, open to private sector participation and investments from banks and insurers.
"We need to shift gears," acknowledged a government advisor familiar with internal discussions in light of Emmanuel Macron's urgent messages to increase defense spending in the past two weeks. "It is absolutely essential to link the necessary efforts with the international emergency situation."