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Management of economics in war is art. And Emmanuel Macron, who is preparing for any Russian possibility, must juggle with funds to build military expenses without scaring the French. He said: No question of raising taxes. But then, where to find the necessary billions? Among the new savings products, targeted taxes and European contributions, the state will explore several songs. Meanwhile, Moscow does not slow down and Europe is wondering if it is ready to face the future.
War: Economy in France under pressure between savings and taxes of the rich
France on the brink of financial bankruptcy? Emmanuel Macron is not concerned about this at the moment. His priorities are now in the war together with Ukraine against Putin. Thus, for the financing of military expenditure, its government is considering the original solution. Brochure andalready used for social housing could adapt to New Mission: Defense.
The idea that is divided. ” I don’t want my money to be used to finance war “A skeptical architect said. Others, as a Parisian pensioner, are ready to play the game: “ We all have to participate ».
But to mobilize the French, you still have to persuade them. Philippe Crevel, economist, remembers it ” The saver is looking above all ». SO, The day will see a special defense productwith an attractive rate? In parallel, the Minister of Eric Eric Lombard evokes Rich. Harder taxation ” Those who have considerable savings He’s on the table.
But how far will this taxation go? France, already in the grip of 6.2 % of GDP, will the capital flight allow?
Remember some characters ::
- 413 billion EUR military budget for 2024–2030;
- EUR 50.5 billion per 2024;
- Europe could mobilize up to 150 billion defensive loans.
The question persists with these colossal amounts: can France read without sacrificing other parts of its economy?
Military spending, headache
In the face of an increasingly concerned Europe, Emmanuel Macron asks to bring military expenses above 3 % of GDP. Some even evoke the switch to 5 %if the United States decides to disconnect from the security of the old continent.
” We will have to go higher Recently, the French President said.
But how to finance such ambitions?
The idea of taxation of multinational societies is excluded. The government prefers to close certain tax niches and attract private investors to the defense fund. But will banks and insurance follow? A meeting is scheduled for this month To persuade them to put capital into the weapons industry.
Meanwhile, Europe is trying to harmonize its efforts. Ursula von der Leyen offers a new mechanism to allow EU access to access Massive Defense Loans. But among the supporters of European strategy and those counting on NATO, the consensus is far from found.
Germany and Poland look at WashingtonWhile France will include European military autonomy.
What do we prefer: an American umbrella or a reinforced European army?
Russia in reserve: threat of underestimation
Moscow does not remain inactive. According to the latest report of the International Institute for Strategic Studies, Russia now dedicates 6.7 % of its GDP to defense or $ 145.9 billion. If we adapt to purchasing power parity, it is equivalent to $ 461.6 billion, which is more than all European military expenses together.
Russian war effort will not stop there. Its military industry runs at full speed, reactivates old factories and mobilizes the private sector to compensate for huge losses in the equipment.
” We are not ready for what awaits us in four or five years He has already warned Mark Rutte, NATO Secretary General.
Europeans increase their defense budget, but is it enough? Estonia, Poland and Germany are controlled again. France hopes that its arms industry will benefit from this momentum rather than seeing that contracts go to South Korea or the United States.
Is the risk of direct confrontation between Europe and Russia real? In any case, the manifestations are lit. Russian Minister of Foreign Affairs, Sergei Lavrov already warns: “ The EU military contingent in Ukraine would mean a direct war with Russia ».
And while some talk about negotiations, others already see a darker horizon.
Over the past two years, many have announced an immediate decline in the Russian economy. However, it is good, despite increasingly heavier sanctions. Last December, however, the wound arrived: Ukraine reduced Russian gas and deprived Moscow by a basic economic pillar. Is Russia as robust as it claims? The future will tell us.
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