French Political Turmoil Casts Doubt on Thales, Dassault Outlook
A Thales Talios targeting pod and a Dassault Rafale B fighter jet at the 2025 Paris Air Show.
Photographer: Matthieu Rondel/BloombergThe political crisis enveloping France risks crimping off revenue at defense contractors Thales SA and Dassault Aviation SA, as budget delays threaten a much-touted increase in military spending.
President Emmanuel Macron this year announced a budget increase of €3.5 billion ($4.1 billion) in 2026 and €3 billion in 2027 for the military, which would put France’s defense budget at €64 billion in 2027 — double the level of 2017, when he took office.