France Ramps Up Defense Funding Amid Geopolitical Tensions

France's public investment bank, Bpifrance, is launching a 450 million euro fund to finance defense projects. This move, backed by finance minister Eric Lombard, is part of heightened military and economic efforts amid geopolitical tensions, notably fears of a Russian threat and concerns about U.S. protection.

France is bolstering its defense sector with a substantial infusion of funds from its public investment bank, Bpifrance. Finance Minister Eric Lombard announced on Thursday the launch of a 450 million euro fund dedicated to financing defense projects. This development is a response to increasing geopolitical concerns, including potential Russian aggression and the uncertain future of U.S. protective commitments.

Lombard mentioned on TF1 that French citizens could contribute in installments of 500 euros, encouraging public participation. The defense and finance ministries indicate that the French defense industry will require over five billion euros in extra equity capital in the forthcoming years to maintain this upward trajectory.

President Emmanuel Macron has been proactive in escalating France's defense expenditure. After an initial doubling of the budget over his tenure, he aims for defense spending to rise to 3-3.5% of France's GDP, a significant leap from the current 2%. The financial initiative underscores France's strategic intentions amid a rapidly shifting global security landscape.

(With inputs from agencies.)