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French Economy Minister Eric Lombard has proposed increasing taxes on the wealthy to help fund France’s growing defense budget, which is set to exceed 3% of GDP in response to rising European security concerns.
Lombard ruled out corporate tax hikes but suggested that “those with substantial savings” could bear a more significant fiscal burden. Additionally, the government is exploring defense-focused investment funds to mobilize private sector contributions.
France’s seven-year military budget (2024-2030) allocates €413 billion, but President Emmanuel Macron recently stated that this amount is insufficient given Europe’s shifting security landscape and the U.S.’s reduced role in the region.
The French budget deficit reached 6.2% of GDP in 2024, raising questions about how to balance defense funding with broader fiscal constraints. While social spending cuts have been ruled out, tax loopholes may be closed to generate additional revenue.
France is also looking to the European Union’s proposed €150 billion defense financing plan to supplement its efforts. Meanwhile, meetings with banks, insurance companies, and investment funds are planned to encourage private sector involvement in military financing.
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