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France Defence and Security Report 2015

France Defence and Security Report 2015

BMI View: France possesses one the leading defence sectors globally, and local manufacturers - a growingnumber of which are entering into international product development partnerships - export items across theworld, in all segments of the industry. Domestic demand for defence equipment is increasingly being drivenby efforts to enhance internal and external counter-terrorism capabilities. In addition, substantial amountsof funding are required for the maintenance of a large navy engaged in the protection of the Frenchcoastline, overseas territories, trade and nuclear submarines as well anti-drug-smuggling, trafficking andpiracy missions. France's military expenditure therefore remains high in a global comparison - althoughbudget growth is limited. While the French defence ministry sources the vast majority of equipment incountry,certain products - such as UAVs - are still procured from the US.

Under the government's initial military spending programme for 2014-2019, the French defence budget wasset to remain static in nominal terms until 2016, after which it would rise gradually until 2019 - representingan overall decline in real terms. Another 24,000 defence jobs were to be slashed, as part of the government'sefforts to rein in public spending amid weak economic growth. However, following the attacks by Islamistmilitants against the offices of satirical magazine Charlie Hebdo in Paris in January 2015, PresidentHollande announced that austerity cuts to this year's budget would be cancelled, and sector spending wouldbe raised by EUR3.8BN (USD4.2bn) in 2016-2019 in order to strengthen counter-terrorismcapabilities. Planned defence expenditure - excluding pensions and the gendarmerie - therefore stands atEUR31.2bn (USD33.9bn) for 2015, and EUR32.7bn (USD35.6bn) at the end of our forecast period in 2019.

In order to meet these targets, the government intends to raise additional funds through the export ofmilitary equipment.


BMI Industry View
SWOT
Defence SWOT
Political
Economic
Operational Risk
Industry Forecast
Defence Spending
Table: Defence Expenditure (France 2012-2019)
Table: Defence Expenditure Scenario - Changing % Of GDP (France 2012-2019)
Armed Forces
Table: Armed Forces Personnel (France 2005-2012)
Table: Manpower Available For Military Service (France 2012-2019)
Defence Trade
Table: Defence Trade Balance (France 2012-2019)
Exports
Table: Defence Exports (France 2012-2019)
Imports
Table: Defence Imports (France 2012-2019)
Macroeconomic Forecasts
Economic Analysis
Table: GDP By Expenditure (France 2012-2019)
Industry Risk Reward Index
Defence Industry Risk Reward Index
Table: Europe - Defence Industry Risk Reward Index
Rewards
Risks
Market Overview
Defence Market Overview
Table: France - Military Deployments
Domestic Defence Sector
Domestic Defence Market
International Partnerships And Defence Agreements
Table: France - Key Defence Agreements
Security Overview
Domestic Threats
Regional Threats
International Threats
Weapons Of Mass Destruction
Company Profile
Dassault Aviation
DCNS
Airbus Group
Thales
Regional Overview
Europe Security Overview - Q4 2015
Global Industry Overview
Political Risk Analysis
Methodology
Sector-Specific Methodology
Table: Defence Risk Reward Index Indicators
Weighting
Table: Weighting of Defence Risk Reward Index

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