As early as 2017, French President Emmanuel Macron committed himself to the concept of so-called strategic autonomy. "When it comes to defense, we must give Europe the ability to act autonomously - in addition to NATO", he said at the time at the Sorbonne in Paris in a speech dedicated to Europe.
Initially, his call was not met with understanding. However, this has since changed - after the start of Russia's aggressive war against Ukraine and especially after the recent re-election of US President Donald Trump, who stated that he no longer wants to unconditionally guarantee Europe's security.
The European Union (EU) recently adopted the so-called "Rearmament of Europe" package. The aim is to invest around 800 billion euros in the European defence sector by 2030. Several EU countries have announced their intention to increase their military budgets. France could play a central role in this regard - but not alone, experts say.
France's operational experience
France's annual military budget amounts to around 50 billion euros, which is around 2% of the country's gross domestic product (GDP). But it will double by 2030. Economists estimate that increased military spending could lead to about 1.5% additional economic growth.
With around 20,000 companies employing around 200,000 people, France's defense sector is the EU's defense backbone, explains Fanny Coulombe, a defense economist at Sciences Po Grenoble University.
"France is present in practically all production segments," she tells DW. "Unlike other countries, we have largely retained this know-how from the 1960s. After the end of the Cold War in the 1990s, spending was reduced. But after the attacks on the World Trade Center in New York on September 11, 2001, and the subsequent war on terrorism, this trend has reversed. France has also always carried out missions abroad, for example in Libya or in the Sahel region."
Systems instead of cartridges
France has preserved its "military culture", adds Sylvie Matteli. The economist, who also specializes in the defense sector, heads the Paris-based think tank "Jacques Delors Institute". You need to have a precise idea of the threat to know what weapons are needed, she says. "France has preserved this ability to analyze - unlike Germany, for example", the expert tells DW.
France is a pioneer in the so-called systems of systems, i.e. high technologies such as the "Rafale" fighter jet or the "Charles de Gaulle" aircraft carrier. "However, we have drastically reduced the production of light weapons and ammunition. "We thought it would be easier to increase production of these less complex products again," Mateli said.
Money and raw materials
On the other hand, resuming production of small arms and ammunition may not be easy, says Coulomb: "We will need large quantities of raw materials, which have become more difficult to obtain since sanctions against raw material supplier Russia came into force over the invasion of Ukraine. We also need to train more engineers and specialists. French industry has been shrinking steadily over the past few decades."
It also comes down to money. France has a high public debt and needs to make drastic savings to reduce its budget deficit. This year, it is likely to exceed five percent of GDP. That is why a defense fund was created through the public investment bank BPIFrance, which is expected to raise 450 million euros. Other financial products specifically targeted at defense are also being discussed to attract French savings.
The Paris-based Defense Angels agency, which specializes in financing defense startups, also expects greater interest. Since its creation in late 2021, its network of investors has already provided financial support to 23 companies. This year alone, the agency, which includes 90 investors, can support almost 30 startups.
"The dispute in the White House between Trump and Ukrainian President Volodymyr Zelensky at the end of February changed the rules of the game," says François Matens, vice president of Defense Angels. "Since then, many previously hesitant investors have been calling me and wanting to invest. We need innovation and cutting-edge technology in the defense sector. "Dynamic startups can do this better than large, sluggish corporate groups," Matens further assures.
Competition with Musk
Take Cailabs, for example: the startup founded in 2013 produces so-called satellite laser communication stations. They use satellites to transmit data via lasers. The stations can establish internet connections as well as secure communication lines and are a competitor to the "Starlink" satellites of the American billionaire Elon Musk.
"Our stations are much more difficult to locate because they are not based on radio signals, but they are still too large to be used on the front line", CEO Jean-François Morisour told DW.
However, half of the company's turnover comes from military applications of the technology. In the near future, this share should increase to 80 percent. "So far, we have exported most of our products, mainly to the US. But that could soon change, also thanks to EU funding" adds the director of the startup.
Europe needs France - and vice versa
Another French startup recently signed its first contracts with defense companies. Kayrros uses artificial intelligence to analyze changes in satellite images. This could soon include troop movements.
"With its experience in space, France will play an important role in the armament process, as it has a small Silicon Valley in this area and very good research institutions," Antoine Half, co-founder of Kayrros, told DW.
However, a little more modesty would not hurt France, says Delphine Deschaud-Dutar, deputy director of the Research Center for International Security and European Cooperation in Grenoble: "France cannot replace the United States as the new leader in the field of security. "This is about cooperation with other countries like Germany or Italy," she told DW. "We need the leading players in Europe, and France needs to show a little more diplomacy and not behave too arrogantly."
Author: Lisa Lewis