JANE'S DEFENCE WEEKLY - OCTOBER 04, 2006
France increases defence spending
JAC Lewis JDW Correspondent
Paris
France's defence spending for 2007 will total EUR36.2 billion (USD46.3 billion): a 2.5 per cent increase on 2006
France will increase spending on defence for the fifth year in a row in 2007 by allocating EUR36.2 billion (USD46.3 billion) to buy new military equipment and cover the armed forces' operating costs, Defence Minister Michele Alliot-Marie announced on 27 September
The total will represent a 2.5 per cent increase over the global 2006 defence outlay and is to include EUR15.9 billion for military equipment. That is slightly more than the EUR15.7 billion being spent on hardware in 2006 and remains in line with President Jacques Chirac's commitment to regularly raise allocations for the duration of France's current 2003-08 military spending plan.
"We have honoured our pledge to increase spending each year," said Alliot-Marie in presenting what was the current centre-right government's last budget.
A new administration will come to office in France following presidential and legislative ballots in May 2007 and many quarters have voiced concern that the incoming government could cut defence spending.
Under the 2007 budget, French forces will receive 13 Rafale multirole combat fighter aircraft, six AS 665 Tiger combat helicopters and a final batch of eight Leclerc main battle tanks. Also, the air force is to take delivery of the first of France's new Armament Air-Sol Modulaire (AASM) bomb guidance kits following a lengthy delay in bringing them into service.
The 2007 equipment budget also sets aside nearly EUR700 million for contracts related to a second aircraft carrier, which France wishes to build in conjunction with the UK's CVF future carrier programme.
French Defence Ministry sources indicate the government wants to formally launch the project and issue contracts by the end of May 2007 in the hope of ensuring the programme will not be axed by a new administration.
Elsewhere, the 2007 budget has earmarked EUR375 million for France's overseas military operations as opposed to EUR175 million in 2006. If needed, additional money for foreign operations will come out of France's general budget.
Alliot-Marie also announced the government has allocated EUR638 million in 2007 for upstream research work on such projects as the Neuron unmanned combat aerial vehicle demonstrator and the Bulle Operationnelle Aeroterrestre (BOA) battle theatre demonstrator.
French defence spending has continued a steady upward trajectory from the early years of this decade, yet has declined as a percentage of GDP. The percentage stood at 2.04 per cent in 2004 and dipped to 1.94 per cent in 2005. It is expected to dip further to 1.92 per cent and 1.90 per cent in 2008 and 2009.
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