🇫🇷 Macron's Military Money
French President Emmanuel Macron is boosting military spending by €6.5 billion over the next two years, citing urgent and mounting threats to freedom.
Why it matters: Amidst plans for massive budget cuts elsewhere, defense is the only area in France set to receive a cash injection, signaling a significant shift in national priorities driven by the war in Ukraine and pressure from allies.
By the Numbers
💰 €3.5 billion increase for the 2026 defense budget.
💰 Another €3 billion increase for 2027.
📈 This represents a roughly 6% increase over the €110 billion already planned for 2026-2027 combined.
🎯 The goal is to double the annual defense budget from 2017 levels, reaching €64 billion by the end of 2027.
😬 France's debt-to-GDP ratio stood at 113% at the end of 2024, compared to Germany's 62.5%.
What they're saying
"Since 1945, freedom has never been so threatened... To be free in this world, we must be feared. To be feared, we must be powerful." — French President Emmanuel Macron
The Big Picture
Pressure from allies: European nations have been pushed by U.S. President Donald Trump to bolster their own security.
This led to a new NATO agreement in June to raise core defense spending to 3.5% of GDP.
France meets the old 2% target but will find the new goal challenging given its stretched public finances.
A tough balancing act: The defense boost comes as Prime Minister François Bayrou's government is working on a fiscal package of up to €40 billion in spending cuts and tax hikes.
However, most opposition parties have previously supported higher military spending and are expected to do so again.
The Bottom Line
Even with a fragile government and deep deficits, Paris sees investing in a powerful, "feared" military as "credible and indispensable".