Managing the economy in wartime is an art. Emmanuel Macron aims to enhance military spending without raising taxes. The article examines potential funding sources and France's current economic challenges.
Economic Pressure: The Role of Savings and Taxation
France faces financial pressure due to the need to increase military spending. Led by President Emmanuel Macron, the government seeks original ways of funding, including using Livret A for defense. Economist Philippe Crevel notes that "the saver looks at the return above all." Economy Minister Eric Lombard discusses the possibility of increasing taxes on the wealthy. Meanwhile, the deficit of 6.2% of GDP raises concerns about capital flight.
The Military Spending Puzzle: Funding Search
Emmanuel Macron advocates for increasing military spending to over 3% of GDP, with discussions of a shift to 5% if the US withdraws from Europe. Taxing multinationals is not being considered. The government aims to attract private investments to defense funds, with a meeting set to discuss this. As Europe tries to harmonize efforts, Germany and Poland look towards Washington.
Russia in the Background: Assessing the Threat
Russia continues to increase military spending, allocating 6.7% of its GDP to defense. Estonia, Poland, and Germany are ramping up purchases of tanks and fighter jets. NATO remains vigilant, warning that European countries are not prepared for possible confrontation in the coming years. As Europe strengthens its defense positions, the Russian economy is expected to face even greater sanctions.
France faces complex financial challenges amid increased military spending. President Macron seeks innovative financial mechanisms without raising taxes. With growing threats from Russia, European countries are forced to strengthen their defense strategies.
