Overview
French defense spending reached $54.5 billion in 2025, following an upward trend. This figure represents just over 2 percent of annual GDP. France is hoping to reach 3.5 percent of GDP for defense spending annually by 2035, but it is not clear how the budget to do so will be found. President Macron’s vision is “Deterrence Through Autonomy”, following the guiding principle of French sovereignty in defense matters, despite having an important role in EU defense policy and of course as a NATO Alliance member.
The following priorities have been laid out by the French government:
- Modernization of the nuclear deterrent and submarine fleet
- Expansion of cyber warfare and space defense programs
- Procurement of Rafale fighter jets and next-gen armored vehicles
- Development of artificial intelligence for command systems
- Personnel retention, recruitment, and training enhancements
- As well as support for Ukraine and procuring more complex munitions.
France is the world’s second arms exporter, after the United States. As a major manufacturer, France ranks low in terms of U.S. defense imports. The local defense industry is very sophisticated, and heavily supported by the government, which owns shares in most if not all its major primes. As a small country with a big defense footprint, only rarely does France choose a non-French manufacturer to build one of its major programs. France occasionally relies on the US FMS system in times of urgent operational need; otherwise, the stated preference is to purchase first French, then European systems, then foreign systems not subject to authorizations such as ITAR.
France is very sensitive to protecting local workshare and local supply chains when engaging in programs and acquisitions. The French BITD boasts European industrial leaders such as Airbus Defense and Space, Dassault Aviation, MBDA, Naval Group, Nexter (KNDS), Safran and Thales which supply many of France’s defense needs.
France is therefore a challenging environment for American companies wishing to sell into supply chains or to compete for DGA solicitations. In practical terms, it is extremely important for U.S. firms to look “French”, or at least “European” when trying to do business in the defense industry, and to explore ways in which local manufacturing can increase their French content when competing for contracts. Joint ventures or partnering arrangements are important to get a foot in the door; the advantages of a joint venture include benefiting from the experience of the French company (instead of being a competitor) in its own market, sharing costs on the programs, and penetrating the French market under a French label. It would be extremely rare for the French MoD to purchase from a U.S. based supplier directly. A local partner or a physical presence is a necessity.
On the sub-assemblies or component levels, there have been many public declarations from the Minister of Defense that French prime contractors should actively refrain from purchasing any products subject to “third country administrative oversight” – meaning ITAR regulations - due to problems of commercial competition related to export prospects. Companies have already begun the process of manufacturing their products free of ITAR components.
The French government and the DGA actively support a major trade show in each segment of the defense market. Participating in one of these shows is one of the best ways to meet prospective French partners and learn about opportunities:
- Euronaval – naval defense.
- Sofins – special forces.
- Paris Air Show – air, civil and defense.
- Milipol – homeland defense.
- Eurosatory – land and land/air defense.
The French MoD participates in the French government’s contract opportunity portal called Place. While the portal requires registration, it is free of charge. The platform is in the French language only and is clearly geared to companies with a physical presence in France. France’s tri-service defense procurement agency is the Délégation Générale de l’Armement, or DGA. Major contracting opportunities may also be viewed in the Official Journal of the European Union.
Contact: U.S. Embassy in France- U.S. Commercial Service Trade Specialist: Cara.boulesteix@trade.gov.