NewsletterPublicationsTheme 2: Determinants and impacts of defence spending Newsletter no. 2: Analysis of French defence budgets 25 July 2016 The Chair in Defence Economics is pleased to present the 2nd issue of its newsletter! France advocates strategic autonomy as the cornerstone of its defence policy, which implies making significant budgetary choices. The aim of this article is therefore to explain the main changes in defence budgets, to analyse their determining factors and finally to detail their macroeconomic consequences. Several results are highlighted. On the one hand, there has been a downward trend in France's defence spending, mainly due to variations in capital expenditure. The most recent changes can also be explained by economic and strategic constraints. Finally, defence spending generates positive economic spin-offs that are channelled through capital expenditure.
