The National Assembly on Tuesday adopted in first reading the bill updating the military program for the years 2024 to 2030, foreseeing an increase in defense spending of 36 billion euros.
The text notably sets the goal of raising the national defense effort to 2% of gross domestic product between 2025 and 2027, and to a minimum of 2.5% in 2030, aiming to reach 3.5% by 2035.
The bill foresees an increase in credits of 36 billion euros from 2026 to 2030 compared to previous plans. Defense expenses from 2024 to 2030 are thus set to increase from 400 billion to 436 billion euros, according to article 2 of the adopted text.
For 2026, defense mission credits will rise from 53.7 billion to 57.1 billion euros, an additional 3.5 billion euros, amid strong budget constraints due to inflation and slowing growth.
The text was adopted with 440 votes in favor, 122 against, and 4 abstentions, as reported on the National Assembly website. The text, which the government has initiated the accelerated procedure for, still needs to be examined by the Senate.
Major French defense companies listed on the Stock Exchange, such as Safran, Airbus, Thales, and Dassault Aviation, are expected to benefit from this reinforcement of military budgets in the coming years.
Agefi-Dow Jones The financial newswire
