France Down 6.2% in 2011

LONDON — France is facing the prospect of real capability gaps as the country adjusts its defense spending to try to bring down its mounting budget deficit.
As part of its first concrete action, the government announced Sept. 29 it plans to curtail defense outlays by €1.3 billion (U.S. $1.77 billion) over three years. The move, expected for months, is nonetheless significant because it reverses several years of increasing defense spending, even if only modestly at times.
But military officials worry the cutback is merely a first step. For instance, the French air force was hoping to start fielding a midlife update for the Mirage 2000D soon. That program has now been delayed and is not planned to emerge until 2017-18. One senior military official is concerned the program may never emerge.
Other programs that were expected to begin next year are the acquisition of 14 new air tankers and the start of acquisition of a Ceres signal intelligence satellite system.
The Mirage 2000D delay could lead to a capability gap after the retirement of the Mirage F1, with its Astac tactical electronic intelligence pod. The Astac pod was to transition to the Mirage 2000D at the time of the midlife upgrade, but now discussions are underway on whether the Rafale’s Spectra electronic warfare suite could be upgraded to take on the task. In either case, a capability gap will exist, the official says.
The new French spending plan calls for annual buys of 11 Rafales per year for both the navy and the air force. Next year’s deliveries should bring the fleet to 104 units handed over. Delivery of six more Reco NG reconnaissance pods for Rafale also are planned — the system is set to make its combat debut in Afghanistan next year.
The 2011 budget calls for spending of €30 billion, increasing by around €500 million in each of the two following years. Equipment spending is planned at around €16 billion, down from €17 billion last year. It is due to increase in 2012 to €16.8 billion and reach €17.4 billion in 2013.
Much of the focus of new orders in 2011 will be on upgrades and maintaining existing equipment. The spending plan calls for funding modernization of three C-135 tankers, made necessary in part by the delay in moving forward on the refueling aircraft acquisition. Two Falcon 50s will also be modified into maritime patrol aircraft and seven Cougar helicopters are also to be overhauled.
Next year should also see the first French delivery of a NH90 helicopter in the TTH transport configuration for the army, plus the delivery of four more NFH90 maritime helos — the first were handed over this year — which also are to become operational in 2011. Six Tiger attack helos also are due for delivery.
Other equipment highlights for 2011 include the redelivery of an upgraded C160 Gabriel signals intelligence aircraft and two upgraded E3 Awacs.
In the missile arena, 2011 should see the final ASMPA nuclear tactical missile handed over, as well as delivery of 70 MICA air-to-air weapons, two SAMP/T air- and missile defense systems, and 100 Aster 30 and 10 Aster 15 missiles.
France also is maintaining its military space activities, a focus area in recent years, despite the Ceres delay. An extra 60 Syracuse III terminals are to be delivered, and final funding will be provided for two new optical imaging satellites for the Musis program.
Industry also will benefit from €2 billion in stimulus money to be funded by a special bond issue. About €1.5 billion will go to support new civil aircraft and helicopter developments and the rest is for an Ariane 5 launch vehicle follow-on and new satellite developments.