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France Boosts Defense to €64 Billion by 2027 and Launches €43.8 Billion Austerity Plan

Macron says increased production will cover the expanded defense budget without adding to France’s debt load

France's President Emmanuel Macron delivers a speech to army leaders, on the eve of the annual Bastille Day Parade in the French capital, at l'Hotel de Brienne in Paris, France July 13, 2025. LUDOVIC MARIN/Pool via REUTERS
French Prime Minister Francois Bayrou reacts during a news conference to present a major public finance recovery plan, outlining his first budgetary orientations for 2026, in Paris, France, July 15, 2025. The slogan reads "The moment of truth". REUTERS/Abdul Saboor      TPX IMAGES OF THE DAY
A horse of the French Republican Guard falls during the annual Bastille Day military ceremony on the Champs-Elysees avenue in Paris, France, July 14, 2025. REUTERS/Gonzalo Fuentes     TPX IMAGES OF THE DAY
El gobierno francés propuso una nueva medida para costear las deudas.

Overview

  • Macron accelerated the defense spending target under the 2017 military programming law to reach €64 billion by 2027, three years ahead of schedule.
  • He highlighted plans to ramp up production of drones, precision and saturation munitions, air defense systems and space capabilities following lessons from Ukraine.
  • Bayrou’s €43.8 billion austerity plan excludes defense and mandates a frozen 2026 pension and civil service pay, cuts two public holidays and reduces civil service replacement to two for every three retirements.
  • A poll by Odoxa-Backbone Consulting finds 72% of French voters back increased defense funding even as opposition parties vow to challenge the austerity measures in parliament.
  • The government has deferred a decision on voluntary military service until autumn and must secure parliamentary approval for its broader fiscal program.