France to Establish €450 Million Defense Fund

France is set to create a €450 million ($490 million) defense fund as part of its broader efforts to strengthen military spending.

The announcement was made by Finance Minister Éric Lombard on Thursday, just ahead of a scheduled speech outlining France’s strategy for financing its growing defense budget.

The new fund will be managed by the state-owned investment bank Bpifrance and is designed to support the country’s defense sector.

Lombard stated that French citizens will have the opportunity to invest in the fund through contributions of €500, allowing long-term public participation in national defense.

This initiative aligns with France’s push to increase military expenditure in response to rising concerns over potential Russian aggression and uncertainty regarding future US security commitments to Europe.

France has been at the forefront of European rearmament efforts, particularly as signs of a potential rapprochement between Washington and Moscow have raised fears of Russia expanding its influence westward.

The French finance and defense ministries have indicated that domestic defense companies will require over €5 billion in additional capital in the coming years to meet growing security demands.

Under President Emmanuel Macron, France has already doubled its defense budget over the past two terms. More recently, he set a higher target, stating that military spending should rise to between 3% and 3.5% of GDP, up from the current 2%.