(Reuters) – The French Defense sector is up on Monday, the day after the announcements made by French President Emmanuel Macron aimed at doubling the budget of the armies in 2027 instead of 2030.
Emmanuel Macron announced on Sunday an additional effort of 3.5 billion euros in 2026 and 3 billion in 2027 for the budget of the armies compared to the current military programming law, due to the “rocks of the world” which “intervene faster than expected” and threaten freedom in France and in Europe.
Thales and Dassault Aviation, which Jefferies analysts consider as the main potential winners of this budgetary effort, are up 1.2% and 1.9% respectively around 11:08 a.m. GMT, while CAC 40 and SBF 120 are both in red.
The broker notes that 22% of Thales sales come from the French defense, against 32% for Dassault Aviation.
Safran and Airbus should also benefit from it, but less markedly, and MBDA shareholders (Airbus, Bae Systems and Leonardo) should also take advantage of the empty and precision emphasis and the typing capacities, adds the broker.
The President of the Republic said that the financial effort in favor of the defense should not go through debt, but by more activities and more production.
(Written by Diana Mandiá, edited by Augustin Turpin)
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