French 2020 Defense Budget to Rise by 4.5%

Presented on September 27 to the Council of Ministers by Florence Parly, Minister of the Armed Forces, the draft defense budget for 2020 provides a global envelope of 37.5 billion euros (€ bn). Modernization of major equipment, job creations and innovation are the main thrusts of the 2020 budget.

The draft budget is in line with the commitments of the 2019-2025 Military Planning Act, of which it is the second annual installment:

-- increase the budget by € 1.7 billion per year until 2022: the 2020 budget thus amounts to € 37.5 billion, an increase of 4.5% compared to 2019;

-- raise the national defense effort to 2% of GDP by 2025: the 2020 budget puts the effort at 1.86% (against 1.84% in 2019);

-- consolidate the financing of foreign operations (OPEX) and domestic missions (MISSINT) with a combined allocation of € 1.1 billion as of 2020. The draft 2020 budget standardises and secures the financing of these operations with an increase of € 250 million. In addition, € 100 million is earmarked for the MISSINT payroll;

-- preserve the investment capacity of the armed forces, without major risk of calling into question orders and deliveries of equipment.

In favor of the military and civilian personnel of the Ministry and their families, the PLF 2020 includes several measures promised by the LPM: reinforcement of the categorical measures, continuation of the family plan, improvement of the conditions of housing and personal equipment. It also provides for job creation especially in the areas of intelligence and cybersecurity.

In terms of equipment, the PLF is accelerating modernization: two-thirds of the increase of € 1.7 billion is devoted to capability renewal and modernization.

The draft 2020 budget also pursues investments that contribute to national strategic autonomy and the building of a European strategic autonomy. Thus, it devotes € 4.7bn to deterrence, for the renewal of both its naval and airborne components. In the space sector, € 448 million is allocated to renewing satellite capabilities.

Finally, in 2020, the ministry promotes innovation and prepares for the future by continuing the transformation and reorganization of its central administration.

In terms of research and development, the Ministry of the Armed Forces will devote a total budget of € 5.5 billion, including € 821 million for fundamental research -- an increase of 8.3% -- of which € 105 million is allocated to academic research and development and short-cycle innovation.

Key figures of the draft 2020 budget:
-- € 37.5 billion for the Defense mission, an increase of € 1.7 billion (+ 4.5%), in line with the LPM, equal to 1.86% of GDP
-- €2.1 billion for veterans
-- €1.1 billion in OPEX and MISSINT provisions
-- 300 net job creations
-- € 14.7 billion in commitments for equipment (+ 83%)
-- € 80 million for the family plan, € 120 million for military housing.

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