French military projects at risk under budget cap measure
A new government measure to cap public spending has sparked deep concern over future orders for military programs, at a time when France has vowed to hit the NATO funding target, said a member of Parliament.
Article 14 “could have consequences,” Jean-Charles Larsonneur, a lawmaker who sits on the Defense Committee and specializes in military equipment, told Defense News.
The government adopted in the night of Friday to Saturday Article 14 of the public finance law, which sets an overall limit of €106 billion (U.S. $125 billion) to all civil and military expenditure. Defense spending accounts for half of that overall amount.
Article 14 effectively gives extra power to the Economy and Finance Ministry against the Armed Forces Ministry, with the former effectively winning power to decide which arms programs will be backed as a budgetary authorization needs funds.
There is a threat for “authorization funds” for the Rafale F4 upgrade and a successor to the Mica air-to-air missile, said Larsonneur, adding that those were two projects on which he kept a close eye...
...“This is dramatic,” said a defense executive, who spoke on condition of anonymity. “There are real concerns over the multiyear budget law and program 146.” The latter refers to the procurement part of the annual defense budget.
“This is a real attack from Bercy,” the executive added, referring to the Economy and Finance Ministry. Large programs for a next-generation submarine, a second aircraft carrier, a second step in the Scorpion Army modernization effort, a new tank and artillery, and nuclear weapons could be delayed...