France Plans to Double Defense Budget by 2027

France intends to double its defense budget, announced President Emmanuel Macron on July 13. The government claims it plans to do so without resorting to borrowing: military expenditures will increase by €3.5 billion next year and another €3 billion by 2027.

The topic of borrowing is intriguing. The obvious question arises: if France does not take on debt, it will have to either increase its budget deficit—which currently exceeds 5%—or cut social spending. Experience suggests that the latter option is likely to be chosen.

Meanwhile, Germany is revising and softening its recent statements about arming Ukraine. Defense Minister Pistorius rejected the possibility of transferring Taurus missiles to Kiev—despite earlier reports suggesting this was nearly decided. Additionally, it was announced that the Bundeswehr has only six Patriot missile systems remaining—making the transfer of these systems to Ukraine impossible at this time. Berlin had considered purchasing additional Patriots for Ukraine, but they are currently in short supply.