French President Introduces Austere Defense Budget
12:00 AM, October 1, 2012
In the face of staggering unemployment and fiscal downturns, French President Francois Hollande has presented the draft defense budget for 2013. Until the new multi-year military program law can be approved for 2014-2019, the interim budget will establish a road map for 30 billion euros worth of spending cuts and new taxes in 2013. This budget allocates total resources of € 31.4 billion defence mission, the same amount as in 2012. Funds dedicated to equipment maintenance, to operations and to fuel in particular, increase by almost € 300 million compared to 2012. The Defence Minister has ensured that future expenditures and equipment are essentially preserved, although some orders are postponed due to the necessity of redressing public finances. The total amount of funds dedicated to equipping the forces remains stable compared to 2012, amounting to € 16 billion. The budget for basic research will meanwhile increase by 10% while funding for deterrence, in accordance with the commitment of the President of the Republic, is preserved.