This announcement comes in a context of European rearmament and growing geopolitical uncertainty, where France is seeking to strengthen its defense capacity while involving its citizens in this national effort.
This investment, which will be offered by the public investment bank Bpifrance, will allow French people to indirectly become shareholders in defense companies from a minimum investment of 500 euros. This new fund aims to raise €450 million to support companies in the sector, which will need around €5 billion in equity and new capital to increase their production capacity.
“It’s very important to involve all French people in this effort; these will be good investments,” declared Éric Lombard during his appearance on TF1. The minister emphasized that this initiative is part of a voluntary approach, allowing citizens who wish to contribute to the national defense effort.
The characteristics of the investment
The entry fee is set at 500 euros, with a proposed ceiling of a few thousand euros per person without further details. The invested funds will be blocked for a minimum period of five years, making it a long-term investment. It is important to note that this product is not comparable to the Livret A savings account or liquid investments, given its nature and commitment period.
The minister did not specify the exact return on this investment, but assured that it would be attractive in the long term, given the expected increase in national defense efforts. He also emphasized that this type of investment is considered “responsible,” rejecting the idea that defense funding would be incompatible with an ambitious environmental, social, and governance policy.
A comprehensive effort to finance defense
This new savings product is part of a broader strategy aimed at mobilizing public and private funds to finance the French defense industry. Éric Lombard announced that public investors, such as the Caisse des Dépôts and Bpifrance, will inject €1.7 billion into the sector. This sum, combined with co-investments with private investors, should make it possible to reach the target of €5 billion in additional equity to support the sector.
The minister also called on private investors to overcome their "cautiousness" in this area, emphasizing the strategic importance of these investments for national sovereignty and the protection of democratic values. He recalled that the State label for socially responsible investment (SRI) allows investment in defense, excluding prohibited weapons, and that France has advocated for guidelines to this effect with the European Securities and Markets Authority (ESMA).
The French defense sector, which includes nine major groups such as Dassault Aviation, Safran, Thales, and Airbus, as well as 4,000 SMEs and mid-cap companies (ETIs), a thousand of which are considered strategic, is at the heart of this financing effort. These companies play a crucial role in the French and European “defense industrial and technological base” (BITD).
The government’s initiative aims to respond to the evolving geopolitical situation, notably the American position towards Ukraine and the Russian threat, which “requires an acceleration of our armament,” according to Matignon. This approach is part of a broader desire to strengthen Europe’s strategic autonomy in defense matters.
The launch of this new savings product raises questions about citizens’ commitment to financing national defense and the balance between public and private investment in this strategic sector. It remains to be seen how the French will react to this investment opportunity and what the real impact will be on the financing of defense companies.
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