A new investment initiative by BPI France, announced by Minister of Economy Eric Lombard, allows individuals to invest in defense companies starting at 500 euros. This voluntary contribution aims to strengthen national defense and enhance European capabilities, with a target of raising 450 million euros. Investments will be locked for at least five years, and while risks exist, Lombard believes established companies can offer long-term returns. Additional private investments will be crucial to meet the sector’s financial needs.
A New Opportunity to Support Defense Initiatives
In a significant move to bolster the defense sector, Minister of Economy Eric Lombard revealed on March 20 the introduction of a new investment product by BPI France, aimed at allowing individuals to become shareholders in defense companies starting from an investment of just 500 euros. This initiative, described as a voluntary contribution to national defense efforts, aligns with a broader call to enhance European defense capabilities. The fund is set to amass a total of 450 million euros, providing a platform for those interested in supporting this critical sector.
Lombard emphasized that this investment opportunity is designed for those who wish to participate, as Bercy plans to engage with investors and defense companies throughout the day, following a directive from Emmanuel Macron earlier this month. He stressed the importance of self-sufficiency in defense, especially given the uncertainties surrounding American support, urging the European Union to mature its defense strategies.
Understanding the Investment Structure
The new fund will enable French citizens to invest in the defense industry through increments of 500 euros, with potential maximum investments yet to be determined, possibly reaching several thousand euros. Lombard clarified that these investments are intended for individuals with savings who are looking for a long-term commitment, noting that the capital will be locked in for a minimum of five years. “This is business capital,” he explained, highlighting the necessity for companies to grow and eventually provide liquidity to investors.
While acknowledging the inherent risks involved, Lombard maintained that investing in established companies could yield better returns in the long run. “For those with savings, it’s a strategic way to prepare for the future,” he stated, reinforcing the notion that these investments are not just financially sound but also crucial for enhancing national defense capabilities.
However, Lombard pointed out that this fund alone will not suffice to meet the financial demands of the defense industry, which requires approximately five billion euros in equity to scale production and development efforts, particularly among 4,000 SMEs in need of financial support. He indicated that while public funds from BPI France and the State will play a role, private investments will be essential for the success of this initiative.
The minister also hinted at the involvement of private entities, such as investment funds and banks, in creating tailored financial products for clients who wish to take part in this voluntary effort. Furthermore, Lombard suggested that life insurance and retirement savings could potentially be utilized to support these initiatives in the future, emphasizing that the choice ultimately rests with the French public. “Clients will have the option to subscribe to these products, while other financial avenues will remain available,” he concluded.