Julian Moxon/Paris
The French defence industry is bracing itself for a further round of defence cuts as the Government tries to meet the criteria to allow the country to join the single European currency, due to be launched in 1999.
Cuts of Fr1.8 billion ($300 million) had already been made by the previous, right-wing, Government earlier this year, bringing the amount available for armaments purchases in the 1997 budget down from Fr88.7 billion to Fr86.9 billion. This will be achieved mainly by programme stretch-outs and reductions in the research, nuclear and infrastructure budgets.
Now, the socialist Government of prime minister Lionel Jospin says that it is looking for reductions of a further Fr2 billion this year to help lower the French budget deficit to within the 3% of the gross-national-product target demanded in the criteria.
Defence minister Alain Richard has been told by Jospin to conduct a "profound and exhaustive" review of arms-purchasing strategy, and is expected to produce a report by the end of September. The Government has promised that "-no major arms purchases will be touched", reflecting the difficulty of cutting key programmes which have already been given at least an initial go-ahead for industrialisation or production.
These include the Dassault Rafale multi-role fighter, for which the Government signed a contract for the initial 13 production aircraft at the Paris air show following Dassault's achievement of a 10% cut in the programme cost. The Rafale remains under intense scrutiny, however, with finance minister Dominique Strausse-Kahn raising doubts recently about its costs before the parliamentary defence commission.
Scrutiny centres on the planned multi-year purchase of 48 aircraft, set for 1997-2002. A Dassault source says: "It is difficult to see how further cuts could be made without seriously damaging the Rafale programme."
The industrialisation contract for the Franco-German Eurocopter Tiger helicopter was also signed at Le Bourget, leading to an expected order for 160 helicopters for France and Germany in 1998. The Tiger is almost certain to be left untouched, since any changes to the French requirement would be likely to upset further the delicate defence industrial relationship with Germany.
The same is true of the four-nation NH Industries NH90 transport/utility helicopter, although sources predict that the number required by France (160) may be reduced. Negotiations are under way to establish the size of the initial production batch for the helicopter, leaving some room for manoeuvre for the French.
All three programmes have suffered major delays and schedule stretches, however. The Tiger project, for example, was hit by an 11-year delay, to 2025, in delivery of the final machine to the French army. Further spending reductions may still be possible in France's nuclear programmes, which are up for review as national strategic priorities change, and in personnel costs and other areas, such as munitions purchases.
Source: Flight International
