Macron’s complicated project: a 10 billion euro nuclear aircraft carrier

While his prime minister is racking his brain over how to democratically pass a budget for the first time in three years, and not use the presidential decree that allows a French president to approve an annual budget at will, Macron announced a “gift” for the French global power in the New Year: a new aircraft carrier, at a cost of at least ten billion euros.

As expected, the announcement was accompanied by loud words. “In the current age of predators, we must be strong so that they fear us,” Macron said. “The new aircraft carrier will be proof of the power of France, of our military and industrial power. A power that is at the service of the freedom to move in the days, in the stormy waters of our time.”

Nuclear propulsion and a capacity of dozens of planes

The new aircraft carrier is expected to enter service only in 2038, and then replace France’s current and only aircraft carrier – the “Charles de Gaulle”. The old aircraft carrier will then be nearly 40 years old.

The high-budget project – 10.2 billion euros according to current forecasts – has already been discussed in the past, and was nicknamed PANG (in French: new generation aircraft carrier). It will be a ship that will be powered by two nuclear reactors with cutting-edge technology in American development for launching aircraft. Renderings of the new ship have already been published in the French media.

Macron announced his decision to give the green light to the construction of the new ship during a visit to the United Arab Emirates. “After a thorough and lengthy examination, I decided to add a new aircraft carrier to the French arsenal. The decision was made this week,” Macron said. The project has been planned for the past few years, and millions of euros have already been invested in the preparations, but the moment of truth for the project was this week.

The ship is already “designed on paper” according to the French Navy, the contracts with the shipyards that will build it (a consortium of Naval Group and Atlantic Sea Shipyards), the TechnicAtome company that will supply the reactors and a host of other manufacturers are already ready to be signed. It is expected to be larger than France’s current aircraft carrier, with a total length of 310 meters and a weight of about 80 thousand tons. About 30 planes and at least six helicopters will be able to be on board and in its hangars, and about 2,000 crew members will man it.

The timing of the announcement – at the height of the budget drama

The media in France pointed to the timing of the announcement, especially since this week reached the height of the budget drama in France. The prime minister appointed by Macron, Stéphane LeCorneau, is fighting around the clock to save the budget for next year. The budget was drawn up with dozens of votes in the parliament, in an attempt to please all parties, and because Macron and Corono, who represents him, do not have a majority in the parliament at all. The process included the adoption of Macron’s reform of raising the retirement age, raising pensions as demanded by the opposition on the left and right, and a host of other measures.

But in the end, after negotiations that lasted until the last minute, the parties did not agree on a common budget. As has been done in the past two years by other prime ministers, Corono is now expected to pass the legislation through the controversial section 49.3, and then see if the opposition works to remove it.

“Despite the impasse reached by the government in terms of the budget, the plans for a new aircraft carrier have been approved,” Le Monde wrote this week. The newspaper also noted that due to France’s budgetary problems, the government expects the companies with which the contracts will be signed to “work in a circle”, and receive most of the return for the project after the year 2027. Next year (2026), the budget will be cut in the amount of only 112 million euros. The construction of the aircraft carrier will be spread over 12 years.

France is the only European country whose ship is powered by nuclear reactors. The US has 11 of these. Three more are under construction.

The announcement of the huge project during a visit to the United Arab Emirates was not accidental either. France cooperates with the United Arab Emirates in the field of arms and security, and Abu Dhabi has already acquired French arms companies. These days there are doubts regarding the financing of the future fighter jet “Raphael”, in joint French-German development, and Macron went to the Gulf to find out if the United Arab Emirates would like to replace Berlin in the project.

The bond yield is at a peak, danger of a future debt crisis

While the new aircraft carrier is supposed to symbolize France’s strength, its political troubles symbolize the depth of the crisis in which it finds itself. LeCorneau announced on Monday that “the chances are zero” of passing an agreed budget to France, which would include cuts that would moderate the deficit and convince the markets that the government is fiscally responsible before the new year.

The yield on French bonds is at a 14-year high, and the country threatens to fall into a future debt crisis – when its debt-to-product ratio is 114% and it is now paying 100 billion euros a year just for the interest on its debt.

Macron, a lame duck since the beginning of his term in 2022, whose walking problems only got worse after he made a mistake and initiated snap elections a year and a half ago in which he lost the chance he had to form a coalition, does not have many options. He can send France to further elections for the National Assembly (which according to the polls will not change the situation), announce his retirement and early presidential elections or withdraw his term until its end (April 2027). In any scenario, with a historically low rate of only 11% of the public supporting him according to polls now, it is hard to imagine that France’s new aircraft carrier will be named after him.