France, ever the proud strategist in the global defence arena, has begun 2025 with a bold statement: it’s doubling down on military strength and industrial autonomy. The French government has confirmed a significant increase in its defence spending, with a clear intent to modernise equipment, support Ukraine indirectly through NATO initiatives, and strengthen its own sovereignty amidst a shifting global landscape.
Record Defence Budget: €47.2 Billion in 2025
According to the newly approved 2025 defence budget, France will allocate a record €47.2 billion to its armed forces—a 7.4% increase from 2024. This boost forms part of the 2024–2030 Military Programming Law (Loi de Programmation Militaire), which aims to bring total defence expenditure to €413 billion over the six-year period.
This funding surge reflects President Emmanuel Macron’s ambition to place France among the top military powers globally, ensuring both deterrence and readiness, particularly in light of Russia’s ongoing aggression and rising tensions in the Indo-Pacific.
Focus on Key Programmes and Manufacturers
The Ministry of Armed Forces is placing strong emphasis on modernisation projects in collaboration with France’s key defence manufacturers:
Dassault Aviation continues leading the Rafale fighter jet programme, with additional orders secured for both French and export customers (notably Indonesia and the UAE). France is also doubling investment in the next-generation fighter, part of the Future Combat Air System (FCAS) project, developed jointly with Germany and Spain.
Naval Group, the state-backed shipbuilder, is advancing work on the Barracuda-class nuclear attack submarines and the upcoming SNLE 3G strategic nuclear submarines. Frigates and offshore patrol vessels also feature prominently in this year’s naval contracts.
Thales Group, the electronics and defence systems giant, is deepening its role in cybersecurity, command-and-control systems, and AI-driven battlefield technologies. It remains central to radar, optronics and secure communication networks for the French military.
Arquus, the land defence vehicle manufacturer (formerly Renault Trucks Defense), is delivering new-generation armoured vehicles as part of the Scorpion programme, replacing older VAB units with the Griffon and Jaguar vehicles.
Nexter (part of KNDS with Krauss-Maffei Wegmann), continues production of the Caesar self-propelled howitzers and Leclerc tank upgrades, with new contracts under way to support mobility and firepower in France’s artillery divisions.
Strategic Autonomy and Export Markets
France’s doctrine remains clear: maintain a sovereign industrial base capable of independent production and exports. In 2024, French arms exports reached €29 billion, with record sales to the UAE, Indonesia, Greece and India. 2025 projections are even stronger, as Macron’s diplomacy has opened doors in Latin America and the Middle East.
Additionally, France is actively strengthening bilateral defence agreements and industrial partnerships, particularly with India, Egypt, and the broader Indo-Pacific sphere—counterbalancing Chinese influence while promoting French-made weapon systems.
Challenges Ahead
Despite the ambitious agenda, the sector faces ongoing challenges:
- Labour shortages in skilled technical manufacturing roles.
- EU-level tensions regarding interoperability and competition between member states’ defence industries.
- Heightened scrutiny on ethical aspects of arms exports, especially concerning end-user risks.
Still, the momentum is undeniably strong, and the government’s unwavering support is a reassuring signal to its defence contractors and global allies alike.
Sources:
- Defense News – France Outlines Major Defense Spending Increase in 2025 Budget (15 March 2025)
- Ministère des Armées – Official Press Releases
- Reuters – Macron’s address to the French nation on ramping up defence spending
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