France Moves to Wartime Economy as US Withdraws Ukraine Support

07 Mar, 2025

France is accelerating its shift to a wartime economy as concerns grow over European defense. President Emmanuel Macron first introduced this concept in 2022, months after Russia’s full-scale invasion of Ukraine. However, skepticism arose as France's defense spending remained below NATO’s 2% GDP target. The country's limited arms deliveries to Ukraine also highlighted shortages in its own military stockpiles.

With former U.S. President Donald Trump distancing the U.S. from Ukraine and raising doubts about NATO’s commitment, France is doubling down on defense. French Finance Minister Eric Lombard recently emphasized the need to move “faster and harder” in bolstering military capabilities. He promised new budgetary measures to strengthen defense spending within a European framework.

For decades, France reduced its defense budget and military forces, benefiting from a "peace dividend" after the Cold War. Despite surpassing the 2% NATO spending threshold in 2023, France’s defense expenditure remains significantly lower than past levels, such as 5.4% in 1960 and 2.8% in 1991.

Although France's military industry ranks among the world’s top arms exporters, it directly employs only about 200,000 people. Experts argue that a true wartime economy requires mobilizing most industries for military production, which is not yet the case in France or Europe.

While the shift to a full war economy is still distant, France is taking steps to reinforce its military readiness and security. Strengthening Europe’s defense industry and self-sufficiency remains a priority, especially amid uncertainties about U.S. support for NATO.

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