France is set to launch a €450 million defense fund in response to growing security concerns, Finance Minister Eric Lombard announced on Thursday. The initiative, managed by France’s public
investment bank Bpifrance, aims to bolster military spending amid rising fears of a potential Russian threat and uncertainty regarding future U.S. support.
Lombard stated that French citizens would be able to invest in the fund with minimum contributions of €500, allowing for long-term financial engagement in national defense.
France has been at the forefront of European rearmament efforts, particularly as geopolitical tensions shift. Concerns have been mounting over a possible rapprochement between Washington and Moscow, which could lead to increased Russian influence in Western Europe.
Despite this push for greater defense capabilities, France faces financial constraints. With already strained public finances, the government must navigate how to fund its military expansion effectively.
European Central Bank (ECB) member and Bank of France Governor François Villeroy de Galhau cautioned against unrestricted defense spending, emphasizing that it cannot follow the same approach as the emergency financial measures taken during the COVID-19 crisis.
According to France’s finance and defense ministries, the country’s defense sector will require over €5 billion in additional equity funding in the coming years.
President Emmanuel Macron, who has already overseen a significant increase in France’s defense budget, has proposed raising military expenditure even further—to 3-3.5% of GDP from the current 2%—in an effort to strengthen national security and military preparedness. Photo by Spc. Kalie Frantz, Wikimedia commons.