France to launch 450 million euros defence-dedicated fund

20/3/2025 16:50

France's public investment bank Bpifrance will launch a 450 million euros ($490 million) fund dedicated to financing defence projects, finance minister Eric Lombard said on Thursday.



That fund will be part of the country's efforts to ramp up military spending due to fears of a Russian attack and doubts about the future of U.S. protection.



"French citizens will be able, by tranches of 500 euros, to invest their money in the long term," Lombard told TF1.



French companies in the defence sector will need more than five billion euros in additional equity capital over the next few years, according to both the finance and the defence ministries.



President Emmanuel Macron, who has initiated a doubling of the French defence budget over the course of his two mandates, has recently set an even higher target, saying the country should increase defence spending to 3-3.5% of economic output from the current 2%.