The French may soon be able to address their war worries with the money in their savings accounts as a newly announced scheme will allow them to become direct investors in rearming the military.
French Economy Minister Eric Lombard announced last week that France’s public investment bank, BpiFrance, would open a new fund of up to €450 million for people to invest their money in defence companies “for the long term”.
A minimum investment of €500 is required and the gains – which are not guaranteed – cannot be withdrawn for five years.
The announcement comes after French President Emmanuel Macron said earlier this month that the country was not ready to reintroduce conscription, but that he wanted to “look at ways to mobilise civilians”.
The new personal investment plan, which offers no fixed rate of return, is an avenue for the French to become “direct shareholders in companies in the defence sector” with “long-term placements”, Lombard said last week. It will be possible to either invest directly into the fund “or via life insurance policies,” he added.
“Other private companies, investment funds and banks are going to offer their customers adapted products,” Lombard told broadcaster TF1 after his announcement.
Customers are expected to start being able to subscribe to the scheme starting in the second half of this year.
An attractive investment for the average Joe?
Early interest in the investment fund seems quite high among a population that, according to a recent BFM TV poll, favours increasing or maintaining France’s support for Ukraine.
“At the ministry, we have never received so many letters from our compatriots saying: ‘How can we help?’” French Arms Minister Sébastien Lecornu recently said according to Ouest-France.
The fund “will itself invest in defence companies,” Bpifrance Director General Nicolas Dufourcq said last week at a meeting between investors and defence companies.
The fund is intended to support France’s “industrial and technological defence base”, which includes nine major groups such as Dassault Aviation, Safran, Thales and Airbus, as well as more than 4,500 small and medium-sized enterprises, the Economy Ministry said.
Major French banks confirmed their support for the French defence industry and their readiness to finance the sector’s expected needs.
[EPD]