{"id":1063,"date":"2018-08-26T00:00:00","date_gmt":"2018-08-26T00:00:00","guid":{"rendered":"https:\/\/ecodef-ihedn.fr\/compte-rendu-de-notre-conference-annuelle-le-financement-de-la-defense-quelles-solutions-pour-quels-besoins\/"},"modified":"2020-04-09T11:49:30","modified_gmt":"2020-04-09T11:49:30","slug":"compte-rendu-de-notre-conference-annuelle-le-financement-de-la-defense-quelles-solutions-pour-quels-besoins","status":"publish","type":"post","link":"https:\/\/ecodef-ihedn.fr\/en\/compte-rendu-de-notre-conference-annuelle-le-financement-de-la-defense-quelles-solutions-pour-quels-besoins\/","title":{"rendered":"Report on our annual conference on \u00abDefence funding: what solutions for what needs?\u00bb"},"content":{"rendered":"
\"\"<\/a>
Florence Parly, Minister for the Armed Forces, 16 November 2017, Maison de la Chimie, Chaire \u00c9conomie de D\u00e9fense\/SGA annual conference<\/span><\/figcaption><\/figure>\n

On Thursday 16 November 2017, our annual conference was held at the Maison de la Chimie, in partnership with the Ministry of the Armed Forces, on the theme of \u00abDefence funding: what solutions for what needs?\u00bb.<\/span><\/h2>\n

The conference opened with a speech by Olivier Martin, Chairman of the Steering Committee of the Chair in Defence Economics and General Secretary of MBDA.<\/p>\n

ROUND TABLE 1: FINANCING REQUIREMENTS<\/strong><\/h3>\n
\"\"<\/a>
From left to right: Guillaume Schlumberger, General Vincent Carr\u00e9, Michel Cabirol, Philippe Duhamel, Christophe Mauriet<\/span><\/figcaption><\/figure>\n

The first round table, chaired by Michel Cabirol (La Tribune), aims to detail the funding requirements. It brings together Guillaume Schlumberger (DGRIS, director of defence strategy, forward planning and counter-proliferation), Air Force Lieutenant General Vincent Carr\u00e9 (EMA, deputy head of planning), Philippe Duhamel (Thales, deputy director general of defence mission systems) and Christophe Mauriet (SGA, director of financial affairs). <\/span><\/p>\n

Guillaume Schlumberger recalls the main points of the Strategic Review: the context is unpredictable, international institutions are under strong attack and strategic areas are under threat. There are four areas of direct engagement: national territory, the Sahel-Saharan strip, the Near and Middle East and the eastern and northern flanks of Europe. The threats are also getting tougher, with jihadist military capabilities, the proliferation of weapons and the problem of getting in first. In industrial terms, we need to maintain a DTIB of 1<\/span>er<\/span> However, this does not prevent a dynamic of European convergence, made possible in particular by Permanent Structured Cooperation (PSC). France's political will is strong, but we need to be clear about the pace set by our European partners. <\/span><\/p>\n

General Vincent Carr\u00e9 discusses the operational requirements of the armed forces in the light of the conclusions of the Strategic Review. All the major strategic functions have been analysed, within the framework of a complete army model. Deterrence has been reaffirmed as the keystone of defence, and its resources will therefore be renewed. Protection is at the heart of the armed forces' mission, with the securing of air and sea space, as well as national territory, including overseas territories. Intervention must enable joint operations but also, if the situation so requires, France's autonomy. Prevention is crucial, as it is less costly than intervention itself. Finally, the knowledge and anticipation function was highlighted, particularly in the cyber dimension. France must remain a major player, which means modernising equipment to guarantee operational superiority in all environments.<\/span><\/p>\n

Philippe Duhamel explained the needs of manufacturers. First and foremost, investment needs to be maintained over the long term in order to guarantee industrial autonomy. Skills are scarce and there are many needs, hence the need for domestic demand, supplemented by external demand through support for exports. European industrial cooperation is interesting, but we need to bear in mind the consequences of mutual dependence, which require balanced commitments from all parties. Innovation remains a cornerstone of business strategy, because it is a major requirement of the armed forces. This also involves the integration of civilian technologies (artificial intelligence), <\/span>big data<\/span><\/i> in particular) where France is well positioned in relation to international competition. <\/span><\/p>\n

Christophe Mauriet outlines the programming imperatives within the Ministry of Defence. The strategic framework defines the requirements for the most distant time horizons, followed by the military programming laws and finally the finance laws. The budget of the Ministry of the Armed Forces represents approximately 10% of the State budget and 80% of State investments. Unfortunately, capital expenditure is more often subject to the vagaries of cash management. The programming framework is constantly being reworked in order to adapt as much as possible to economic and strategic shocks. The next LPM should make it possible to converge towards 2% of GDP (on a perimeter linked to the \u00abdefence\u00bb mission). Up to 2022, the additional annual effort will be in the region of \u20ac1.7 billion, rising to \u20ac3 billion thereafter. This is obviously a considerable effort, but the political will is equal to the challenge.<\/span><\/p>\n

\"\"<\/a>
Jean-Jacques Bridey, MP for Val de Marne and Chairman of the National Assembly's Defence and Armed Forces Committee<\/span><\/figcaption><\/figure>\n

Speech by Jean-Jacques Bridey, Chairman of the National Assembly's Committee on National Defence and the Armed Forces :<\/strong><\/p>\n

After recalling the new members' interest in defence issues, Jean Jacques Bridey presented a number of observations drawn from the committee's hearings. Firstly, he pointed out that after two decades of cuts in personnel, equipment and financial resources, the country has embarked on a phase of budgetary recovery. Although the defence apparatus has suffered from past budget cuts, its future has not been irreparably compromised. The increase in future appropriations is remarkable and will accelerate until the end of the five-year period. In addition, a number of our European partners, including Germany, have also halted the process of reducing military spending by committing to a process of recapitalisation, whether budgetary, capability or even industrial. Permanent structured cooperation and the European Defence Fund play a role in this overall defence effort. However, the needs expressed by the armed forces (acceleration of the SCORPION programme, size of the fighter aircraft or the navy fleet, requirements linked to wear and tear on equipment used in OPEX, etc.) cannot all be met, despite a clear budgetary effort. The 2%s will not solve all the problems, and choices will have to be made while taking care to avoid disruptions in capabilities. In the 2019-2025 military programming law, particular attention will be paid to filling the gaps that are being felt in the forces due to the intensity of operational rhythms. We also need to regain a certain operational depth in terms of human resources. There have probably been too many staff cuts in the past, even though operational contracts are now well overdue. As a result, recruitment and the improvement of military conditions will have to be given particular importance. In conclusion, what is important today is not so much the timing of future major armaments programmes, but rather the timing of the immediate needs of the armed forces so that they can fulfil their missions. Military personnel need to see the results of this policy quickly.<\/span><\/p>\n

ROUND TABLE 2: TYPES OF FINANCING<\/strong><\/h3>\n

Chaired by Michel Cabirol (La Tribune), the second round aims to present the different types of financing. It brought together IGA Bertrand Le Meur (Director of Industrial Services and Economic Intelligence, DGA), Jean Belin (holder of the Defence Economics Chair of the IHEDN Endowment Fund), Olivier Martin (General Secretary of MBDA) and Jean-Yves Battesti (General Secretary of Naval Group).<\/p>\n

\"\"<\/a>
From left to right: IGA Bertrand le Meur, Jean Belin, Michel Cabirol, Olivier Martin, Jean-Yves Battesti<\/span><\/figcaption><\/figure>\n

Bertrand Le Meur points out that technological upheavals are taking place at the moment, as cycles have accelerated with major technological breakthroughs, some of which are linked to civil applications. The DGA is adapting by increasing its financial resources, but also by taking greater account of innovations in use. To get off the beaten track, we need to call on companies outside the major groups. This is particularly the case with innovation clusters, incubators and the DGA-LAB. The RAPID programme also contributes to this through subsidies. Investment in equity<\/em> are also possible. Recourse to the European fund can lead to risks of duplication that are damaging to existing industries, even if it can also help to create cooperative ventures or launch new weapons programmes.<\/p>\n

Jean Belin presents the different ways in which the European partners are financed. The first lever is obviously defence budgets, with major differences between the United States and European countries. The second lever is exports. There is also innovative financing, which can be defined as initiatives that involve raising new funds to meet needs. This essentially involves outsourcing (with or without transfer of ownership) and pooling (of capacity or for training). Public-private partnerships are part of this financing, but are not always fully effective for irregular activities or when information asymmetries are high. There is therefore a need for analysis to clearly assess the options.<\/p>\n

Olivier Martin describes the crucial advantage of cooperation as access to critical mass. This requires perfect mastery of the key technologies needed to meet the needs of domestic customers, as well as the ability to enter international markets. The prerequisite is a relatively homogenous defence policy between the partner countries. Cooperation is working, particularly in R&T, with the MCM ITP (Materials & Components for Missiles Innovation & Technology Partnership<\/em>) involving France and the United Kingdom, or for the SCALP or METEOR, with lower unit costs. European funding is an opportunity to develop European strategic autonomy by supporting a European DTIB. We need to identify European companies, which is difficult, but we also need to create a reasonable number of \u00abEuropean champions\u00bb by simplifying the organisation of European agencies such as OCCAR.<\/p>\n

Jean-Yves Battesti points out the importance of exports in achieving critical mass. It generates highly skilled jobs, helps maintain skills between two major national programmes, complements R&D funding and limits fixed costs. Relationships based on trust are key to export success, as demonstrated by the contract signed with Australia. The use of our equipment by the French Navy gives us credibility with our customers. Deterrence is also an asset, as it enhances operational capabilities. Exports are always accompanied by technology transfers. We therefore need to talk to the French government to find out which critical technologies cannot be transferred. Constant innovation remains the key to maintaining an edge in both domestic and international demand.<\/p>\n

CONCLUSION OF THE CONFERENCE BY FLORENCE PARLY, MINISTER FOR THE ARMED FORCES\u00a0<\/strong><\/h3>\n
\"\"<\/a>
\u00a0Florence Parly, Minister for the Armed Forces<\/span><\/figcaption><\/figure>\n

It may not seem so obvious at first, but everything links the economy to defence. The Chair in Defence Economics and the Observatoire Economique de la D\u00e9fense (OED) are the symbols of a useful, positive and thoughtful dynamic of this symbiosis that exists between our researchers, our economists, our industrialists, our students and our armed forces. There are three priorities in the 2019-2025 military programming law: restoring the sustainability of France's military commitments, improving personnel conditions and preparing for the future to deal with the threats of tomorrow. Threats are changing and our enemies are better armed and better equipped. To prepare for the future, defence is a driving force. We need to innovate to obtain the best technologies and maintain our sovereignty. The DGA and defence companies invest every year to innovate and enable our armed forces to respond to the threats facing France, as set out in the 2017 Strategic Review. France must maintain a comprehensive and balanced armed forces model, geared towards innovation. To give this system the means to exist, additional funding has been allocated in the new military programming law, with the aim of giving 2% of our GDP to defence. Defence companies are diversifying, going global, exporting and making a positive contribution to France's trade balance. Defence plays a role in regional planning and local economic development. In addition to the military units present throughout the country, there are 200,000 jobs in the defence industrial and technological base. Last but not least, the European Defence Fund is an historic initiative to work with the countries of the European Union to meet Europe's defence needs.<\/p>\n

Watch the video recording of all the speeches\u00a0by clicking here.<\/a>\u00a0<\/strong><\/h2>","protected":false},"excerpt":{"rendered":"

Le jeudi 16 novembre 2017 s’est tenue notre conf\u00e9rence annuelle \u00e0 la Maison de la chimie, en partenariat avec le minist\u00e8re des Arm\u00e9es, sur le th\u00e8me \u00ab\u00a0Le financement de la d\u00e9fense : quelles solutions pour quels besoins ?\u00a0\u00bb. La conf\u00e9rence s’est ouverte sur une allocution d’Olivier Martin, Pr\u00e9sident du Comit\u00e9 de Pilotage de la Chaire […]<\/p>\n","protected":false},"author":1,"featured_media":1029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[355],"tags":[72,36,47,141,95,142],"class_list":{"0":"post-1063","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-activites-evenements-portes-par-la-chaire","8":"tag-armees","9":"tag-defense","10":"tag-economie-de-defense","11":"tag-financement-de-la-defense","12":"tag-ministere-des-armees","13":"tag-observatoire-economique-de-la-defense"},"yoast_head":"\nCompte rendu de notre Conf\u00e9rence annuelle "Le financement de la d\u00e9fense : quelles solutions pour quels besoins ?" - Chaire \u00c9conomie de d\u00e9fense - IHEDN<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ecodef-ihedn.fr\/en\/compte-rendu-de-notre-conference-annuelle-le-financement-de-la-defense-quelles-solutions-pour-quels-besoins\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Compte rendu de notre Conf\u00e9rence annuelle "Le financement de la d\u00e9fense : quelles solutions pour quels besoins ?" - Chaire \u00c9conomie de d\u00e9fense - IHEDN\" \/>\n<meta property=\"og:description\" content=\"Le jeudi 16 novembre 2017 s’est tenue notre conf\u00e9rence annuelle \u00e0 la Maison de la chimie, en partenariat avec le minist\u00e8re des Arm\u00e9es, sur le th\u00e8me \u00ab\u00a0Le financement de la d\u00e9fense : quelles solutions pour quels besoins ?\u00a0\u00bb. 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