France pledges nearly €5B boost for defense amid budget concerns
France's Economy Minister, Éric Lombard, announced on Thursday that defense sector companies will need nearly 5 billion euros to boost production in line with the country's enhanced defense efforts.
Minister Lombard noted that the public bank Bpifrance will launch a new fund to finance defense projects, totaling 486 million USD. According to Lombard, citizens will have the opportunity to invest "for the long term," with a minimum deposit of 540 USD.
He spoke ahead of a meeting between private investors and the defense industry, which is scheduled for Thursday at the Ministry of Finance.
The meeting aims to secure funds to strengthen the nation's defense infrastructure. France intends to increase the GDP share of defense spending from the current 2.1% to 3.5%.
However, the country already has a high budget deficit and public debt. On Thursday, the head of the central bank, François Villeroy de Galhau, cautioned against excessive spending, stressing that the costs associated with strengthening the defense sector should be carefully estimated and covered by available funds.
