“War economy”: a deputy recommends “mobilizing the savings of the French”
The financing of a “war economy” aimed at increasing the production capacities of the French defense industry requires a “mobilization of French savings”recommends a parliamentary report published at the time of a meeting at the Elysée Palace on the subject.
It’s necessary “to mobilize the savings of the French for the benefit of the defense industry, via the creation of a savings account or a regulated savings plan or through a State loan”suggests the deputy Horizons of Charente-Maritime Christophe Plassard at the end of a mission « flash ».
Its report must be examined on Wednesday by the finance committee, the day after a meeting around Emmanuel Macron of defense industrialists to take stock of the transition to a “war economy” called for by the Head of State. This aims to enable industrialists to produce more, at lower cost and in the shortest possible time to deal with the prospect of a so-called high-intensity conflict.
If there is one “changing mentalities linked to the war in Ukraine”, “the lack of access of small businesses to private financing remains a major obstacle” to their rise in power, notes Christophe Plassard.
Banks and financial institutions are “more reluctant to finance the defense industry” because they have “tendency to over-interpret compliance rules” and fear to see their “tarnished reputation” through investments in a sector “considered unethical”he points out.
It is therefore necessary, according to him “consider the creation under the control of the State of a banking pool, bringing together the major French banks, intended to finance small companies in the industrial and technological base of defense, and of which a part of the loans would be guaranteed by the State ».
This also involves tax cuts “to encourage companies to stockpile critical raw materials and components and to encourage individuals to invest in small businesses in the defense sector”according to him.
Christophe Plassard also proposes the creation of specialized defense funds to compensate for the “market failures” or that of a “label encouraging investment in strategic SMEs”.
European regulations must finally “taking into account the interests of defense” and the European Investment Bank (EIB) be authorized to fund defence.